Conflict of Laws Cases 1951-1960

(1) Saura Import and Export Co! Inc " #i$iano L %eer
GR No. L-2927 February 26, 1951
(&) '(ilippine )efinin* " Ledesma
GR No. L-2193 April 27, 1951
(+) In re, -estate Estate of t(e deceased .ose # Sunta/
GR Nos. L-3087 an L-3088 !uly 31, 195"
(0) 'acific %icronisian Line " 1el )osario
GR No. L-715" #$%ober 23, 195"
(5) 2in* %au 3u " S/cip
GR No. L-5897 April 23, 195"
(6) 4rca " .a"ier
GR No. L-6768 !uly 31, 195"
(5) 1e los Santos and 4stra6uillo " )epu$lic
GR No. L-"818 February 28, 1955
(7) Ca/etano Liwana* " )o$ert 8amill
GR No. L-7881 February 27, 1956
(9) 'aul %ac 1onald " 9ational Cit/ #an: of 9;
GR No. L-7991 &ay 21, 1956
(10) Cu <n=ien* Sons " #oard of -ax 4ppeals
GR No. L-6296 'ep%e(ber 29, 1956
(11) %amerto Corre " >uadalupe Corre
GR No. L-10128 No)e(ber 13, 1956
(1&) Lao Ic(on* et al " .aime 8ernande?
101 il 1155 &ay 31, 1957
(1+) East$oard 9a"i*ation " .uan ;smael Co
102 *+il 1 'ep%e(ber 10, 1957
(10) L/ >io: 8a et al " >alan*
101 *+il "59 &ay 17, 1957
(15) 4merican #i$le Societ/ " Cit/ of %anila
101 *+il 386 April 30, 1957
(16) Claudina @da de @illaruel " %anila %otor
10" *+il 926 ,e$e(ber 13, 1958
(15) )oman Cat(olic 4postolic 4dministrator of 1a"ao " -(e Land )e*istration Commission
102 *+il 596 ,e$e(ber 20, 1957
(17) Lim Sio: 8ue/ " 4lfredo Lapi?
103 *+il 930 &ay 28, 1958
(19) Lee Suan 4/ et al " >alan*
106 *+il 707 ,e$e(ber 23, 1959
(&0) 2o 3ai %e " >alan*
106 *+il 661 No)e(ber 28, 1959
(&1) -estate Estate of CA #o(anan " #o(anan et al!
G.R. No. L-12105 !anuary 30, 1960
(&&) #enito Lim " 8er$ert #rownwell
107 *+il 3"" &ar$+ 2", 1960
S4<)4 I%'A)- 491 EB'A)- CA! I9C! " #I#I49A L %EE)
>) 9o L-&9&5 Ce$ruar/ &6! 1951
Doctrine: While on army bases of installations within Philippines, the goods purchased were, in contemplation of law, on
foreign soil. The result was that when Saura, after acquiring title to such goods, brought them outside of those bases or
depots, there was importation in the ordinary sense.
FA-.'/ .+is is an a$%ion %o re$o)er a %a0 pai in pro%es% by 'aura 1(por% an 20por% -o. 1n$.
'aura 1(por% an 20por% 1n$ bou3+% 4ro( %+e Forei3n Li5uia%ion -o((ission, a 6ni%e '%a%es Go)ern(en%
a3en$y, 7eeps, 8eapons $arriers, an %ru$9s, all o4 8+i$+, a% %+e %i(e o4 pur$+ase, 8ere lo$a%e in i44eren% 6ni%e '%a%es
Ar(y epo%s in %+e *+ilippines. 1((eia%ely %+erea4%er, 'aura +a %+e pur$+ases eli)ere %o i% 8+i$+ in %urn sol i% %o
%+ir persons in %+e *+ilippines.
Lower Court )ulin*, 'aura 1(por% an 20por% 1n$ is an i(por%er an le)ie on %+e (o%or )e+i$les pur$+ase %+e
per$en%a3e %a0 as pres$ribe in 'e$%ions 185 an 186 o4 -o((on8eal%+ A$% No. "66.
ISS<E,
1. :+e%+er or no% 'aura is an i(por%er.
)4-IA, ;es, 'aura is an i(por%er. .+e sales i% (ae %o %+ir persons 8ere ori3inal sales %a0able uner %+e se$%ions
(en%ione abo)e.
A% %i(e o4 'aura<s pur$+ase, %+e 6ni%e '%a%es Ar(y in %+e *+ilippines 8as a belli3eren% o$$upan%, a% leas% o4
ar(y bases, ar(y epo%s, an ar(y ins%alla%ions i% 8as usin3 4or %+e prose$u%ion o4 %+e e0is%in3 8ar. =y se$%ion 280 o4 %+e
Rules o4 Lan :ar4are, belli3eren% o$$upa%ion >in %+is $ase by %+e 6ni%e '%a%es Ar(y? $ease only 8+en @%+e o$$upan%
evacuated %+e is%ri$% or was ri)en ou% by %+e ene(y, or by levee en massee, an %+e le3i%i(a%e 3o)ern(en% a$%ually
resumed i%s 4un%ions.@
=y poli%i$al rela%ions+ip be%8een %+e *+ilippines an be%8een %+e 6ni%e '%a%es an by reason o4 8ar, %+e 6ni%e
'%a%es Go)ern(en% on %+a% a%e en7oye 7urisi$%ional ri3+%s o)er $er%ain areas o4 %+e *+ilippine %erri%ory an o)er (ili%ary
3oos brou3+% +ere an in%ene 4or %+e 6ni%e '%a%es Ar(y. :+ile on ar(y bases o4 ins%alla%ions 8i%+in *+ilippines %+ose
3oos 8ere, in $on%e(pla%ion o4 la8, on 4orei3n soil. .+e resul% 8as %+a% 8+en 'aura, a4%er a$5uirin3 %i%le %o su$+ 3oos,
brou3+% %+e( ou%sie o4 %+ose bases or epo%s, %+ere 8as i(por%a%ion in %+e orinary sense.
'8ILI''I9E )ECI9I9> CA%'49;! I9C " CES4) LE1ES%4
>) 9o L-&91+ 4pril &5! 1951
Doctrine: nder the !aw Pia doctrine, a pre"war debtor who had paid his debt during the #apanese occupation with the
authori$ed office%body of the occupant is released from all his liability to the former creditor.
C4C-S, *+ilippine Re4inin3 -orpora%ion is a o(es%i$ $orpora%ion opera%in3 as an oil (anu4a$%urer an re4iner, 8i%+ i%s
$api%al s%o$9 bein3 o8ne (os%ly by =ri%is+ an ,u%$+ in%eres%s.
#n February 15, 1939, %+e *+ilippine Re4inin3 -o(pany sol %o %+e e4enan% -esar Lees(a, a Filipino $i%iAen,
%+ree par$els o4 lan in *arana5ue, RiAal 4or %+e a(oun% o4 *"13,6"". Lees(a eli)ere *103,"11 in $as+, an
e0e$u%e si0 pro(issory no%es 4or %+e balan$e, ea$+ 4or %+e a(oun% o4 *51,705.50, (a%urin3 su$$essi)ely on February 15
o4 %+e years 19"0, 19"1, 19"2, 19"3, 19"", an 19"5. .o se$ure pay(en% o4 %+e no%es, Lees(a (or%3a3e %+e %+ree
par$els o4 lan. .+e 4irs% %8o pro(issory no%es 8ere pai. Bo8e)er, urin3 %+e !apanese o$$upa%ion, Lees(a sa%is4ie
%+e re(ainin3 4our pro(issory no%es %o %+e #44i$e o4 %+e 2ne(y *roper%y -us%oian o4 %+e !apanese Ar(y, upon pre)ious
e(an by %+e la%er. .+e pay(en% 8as (ae in !apanese (ili%ary no%es. -onse5uen%ly, %+e !apanese au%+ori%ies $ause
%+e (or%3a3e %o be $an$elle an %+is 8as uly no%e in proper Re3is%ry o4 ,ees.
Lower Court )ulin*, .+e pay(en% (ae by Lees(a is )ali as per %+e Ba8 *ia o$%rine 8+i$+ absol)e a pre-8ar
eb%or o4 %+e -+ina =an9in3 -orpora%ion 8+o +a pai +is eb% urin3 %+e !apanese o$$upa%ion 8i%+ !apanese (ili%ary
no%es %o %+e =an9 o4 .ai8an, %+a% +a been esi3na%e by %+e !apanese &ili%ary %o li5uia%e %+e a4oresai ban9, an
ene(y-o8ne ins%i%u%ion es%ablis+e in o$$upie %erri%ory.
ISS<E,
1. :+e%+er or no% %+e pay(en% is )ali as %+e presen% $on%ro)ersy in)ol)e i44eren% 4a$%s 4ro( %+e Ba8 *ia
$on%ro)ersy as %+e %+e pay(en% 8as no% eli)ere %o %+e =an9 o4 .ai8an, or any o%+er ban9. C ;es.
)4-IA, .+e pay(en% (ae by Lees(a is )ali. Be is release 4ro( all +is liabili%y %o +is 4or(er $rei%or, %+e *+ilippine
Re4inin3 -orpora%ion.
.+e -F1 is $orre$% in relyin3 in %+e Ba8 *ia o$%rine. 6pon %+e s%ren3%+ o4 %+is o$%rine, %+e -our% +a also
)alia%e pay(en%s uner si(ilar $ir$u(s%an$es in B'=- ) 'a(anill
I9 )E, -ES-4-E ES-4-E AC -8E 1ECE4SE1 .ASE # S<9-4; SIL@I9A S<9-4; @S I9 )E, I9-ES-4-E
ES-4-E
>) 9os L-+075 and L-+077 .ul/ +1! 1950
Doctrine: Wills proved and allowed in a foreign country, according to the laws of such country, may be allowed, filed, and
recorded by the proper &ourt of 'irst (nstance in the Philippines.
C4C-S, !ose 'un%ay, a Filipino $i%iAen an resien% o4 %+e *+ilippines, ie in %+e $i%y o4 A(oy, Foo9ien pro)in$e,
Republi$ o4 -+ina, lea)in3 real an personal proper%ies in %+e *+ilippines an a +ouse in A(oy, Foo9ien pro)in$e, -+ina,
an $+ilren by +is 4irs% (arria3e 8i%+ &anuela .. -ruA na(ely, Apolonio, -on$ep$ion, An3el, &anuel, Feeri$o, Ana,
Aurora, 2(iliano, an $+ilren 8i%+ +is se$on (arria3e %o &aria Na%i)ia Li( =illian na(ely !ose, !r. an 'il)ino.
1n%es%a%e pro$eein3s 8ere ins%i%u%e in %+e -our% o4 Firs% 1ns%an$e o4 =ula$an. Apolonio 'un%ay 8as e$lare
a(inis%ra%or. A4%er +is ea%+, Feeri$o -. 'un%ay 8as appoin%e a(inis%ra%or o4 %+e es%a%e. &aria Na%i)ia 4ile a
pe%i%ion in %+e -our% o4 Firs% 1ns%an$e o4 =ula$an 4or %+e proba%e o4 a las% 8ill an %es%a(en% $lai(e %o +a)e been
e0e$u%e an si3ne in %+e *+ilippines on No)e(ber 1929 by %+e la%e !ose =. 'un%ay. .+is pe%i%ion 8as enie be$ause
o4 %+e loss o4 sai 8ill an o4 %+e insu44i$ien$y o4 %+e e)ien$e %o es%ablis+ %+e loss o4 %+e sai 8ill. An appeal 8as %a9en
4ro( sai orer enyin3 %+e proba%e o4 %+e 8ill an %+is -our% +el %+e e)ien$e be4ore %+e proba%e $our% su44i$ien% %o pro)e
%+e loss o4 %+e 8ill an re(ane %+e $ase %o %+e -our% o4 Firs% 1ns%an$e o4 =ula$an 4or %+e 4ur%+er pro$eein3s.
'il)ino 'un%ay, $lai(in3 %+a% +e +a 4oun a(on3 %+e 4iles, re$ors an o$u(en%s o4 +is la%e 4a%+er a 8ill an
%es%a(en% in -+inese $+ara$%ers e0e$u%e an si3ne by %+e e$ease on " !anuary 1931 an %+a% %+e sa(e 8as 4ile,
re$ore an proba%e in %+e A(oy is%ri$% $our%, *ro)in$e o4 Foo9ien, -+ina, 4ile a pe%i%ion in %+e in%es%a%e pro$eein3s
prayin3 4or %+e proba%e o4 %+e 8ill e0e$u%e in %+e *+ilippines or o4 %+e 8ill e0e$u%e in A(oy, Foo9ien, -+ina.
:i%nesses 8ere presen%e %o pro)e %+e e0is%en$e o4 %+e 8ill alle3ely le4% by !ose 'un%ay.
Lower Court )ulin*, ,issallo8e alle3e 8ill an %es%a(en% e0e$u%e in &anila on No)e(ber 1929, an %+e alle3e las%
8ill an %es%a(en% e0e$u%e in Dulan3su, A(oy, -+ina, on " !anuary 1931, by !ose =. 'un%ay.
ISS<E,
1. :+e%+er or no% %+e 8ills alle3ely le4% by !ose '6n%ay $an be proba%e.
)4-IA, 6p+el e$ision o4 %+e -our% o4 Firs% 1ns%an$e. Gran%in3 %+a% %+ere 8as a 8ill uly e0e$u%e by !ose =. 'un%ay,
an %+a% i% 8as in e0is%en$e a% %+e %i(e o4, an no%e re)o9e be4ore +is ea%+, %+e %es%i(onies o4 %+e 8i%nesses presen%e
4all 4alls s+or% o4 %+e le3al re5uire(en% %+a% %+e pro)isions o4 %+e los% 8ill (us% be @$learly an is%in$%ly pro)e by a% leas%
%8o $reible 8i%nesses.@ -reible 8i%nesses (ean $o(pe%en% 8i%nesses an %+ose 8+o %es%i4y %o 4a$%s 4ro( or upon
+earsay are nei%+er $o(pe%en% nor $reible 8i%nesses.
As %o %+e 8ill $lai(e %o +a)e been e0e$u%e on " !anuary 1931 in A(oy, -+ina, %+e la8 on %+e poin% in Rule 78. 'e$%ion
1 o4 %+e rule pro)ies/
:ills pro)e an allo8e in a 4orei3n $oun%ry, a$$orin3 %o %+e la8s o4 su$+ $oun%ry, (ay be allo8e,
4ile, an re$ore by %+e proper -our% o4 Firs% 1ns%an$e in %+e *+ilippines.
'e$%ion 2 pro)ies/
:+en a $opy o4 su$+ 8ill an %+e allo8an$e %+ereo4, uly au%+en%i$a%e, is 4ile 8i%+ a pe%i%ion 4or
allo8an$e in %+e *+ilippines, by %+e e0e$u%or or o%+er person in%eres%e, in %+e $our% +a)in3 7urisi$%ion,
su$+ $our% s+all 4i0 a %i(e an pla$e 4or %+e +earin3, an $ause no%i$e %+ereo4 %o be 3i)en as in $ase o4 an
ori3inal 8ill presen%e 4or allo8an$e.
'e$%ion 3 pro)ies/
14 i% appears a% %+e +earin3 %+a% %+e 8ill s+oul be allo8e in %+e *+ilippines, %+e $our% s+all so allo8 i%, an
a $er%i4i$a%e o4 i%s allo8an$e, si3ne by %+e !u3e, an a%%es%e by %+e seal o4 %+e $our%s, %o 8+i$+ s+all be
a%%a$+e a $opy o4 %+e 8ill, s+all be 4ile an re$ore by %+e $ler9, an %+e 8ill s+all +a)e %+e sa(e e44e$%
as i4 ori3inally pro)e an allo8e in su$+ $our%.
.+e 4a$% %+a% %+e (uni$ipal is%ri$% $our% o4 A(oy, -+ina, is a proba%e $our% (us% be pro)e. .+e la8 o4 -+ina on
pro$eure in %+e proba%e or allo8an$e o4 8ills (us% also be pro)e. .+e le3al re5uire(en%s 4or %+e e0e$u%ion o4 a )ali 8ill
in -+ina in 1931 s+oul also be es%ablis+e by $o(pe%en% e)ien$e. Bo8e)er, %+ere 8as no e)ien$e presen%e %o pro)e
%+is poin%. .+e un)eri4ie ans8ers %o %+e 5ues%ions propoune by $ounsel 4or %+e appellan% %o %+e -onsul General o4 %+e
Republi$ o4 -+ina, ob7e$%e %o by $ounsel 4or %+e appellee, are ina(issible, be$ause apar% 4ro( %+e 4a$% %+a% %+e o44i$e o4
-onsul General oes no% 5uali4y an (a9e %+e person 8+o +ols i% an e0per% on %+e -+inese la8 on pro$eure in proba%e
(a%%ers, i4 %+e sa(e be a(i%%e, %+e a)erse par%y 8oul be epri)e o4 +is ri3+% %o $on4ron% an $ross-e0a(ine %+e
8i%ness. -onsuls are appoin%e %o a%%en %o %rae (a%%ers. &oreo)er, i% appears %+a% all %+e pro$eein3s +a in %+e
(uni$ipal is%ri$% $our% o4 A(oy 8ere 4or %+e purpose o4 %a9in3 %+e %es%i(ony o4 %8o a%%es%in3 8i%nesses %o %+e 8ill an %+a%
%+e orer o4 %+e (uni$ipal is%ri$% $our% o4 A(oy oes no% purpor% %o proba%e %+e 8ill. 1n %+e absen$e o4 proo4 %+a% %+e
(uni$ipal is%ri$% $our% o4 A(oy is a proba%e $our% an on %+e -+inese la8 o4 pro$eure in proba%e (a%%ers, i% (ay be
presu(e %+a% %+e pro$eein3s in %+e (a%%er o4 proba%in3 or allo8in3 a 8ill in %+e -+inese $our%s are %+e a eposi%ion or %o
a perpe%ua%ion o4 %es%i(ony, an e)en i4 i% 8ere so i% oes no% (easure sa(e as %+ose pro)ie 4or in our la8s on %+e
sub7e$%. 1% is a pro$eein3 in re( an 4or %+e )alii%y o4 su$+ pro$eein3s personal no%i$e or by publi$a%ion or bo%+ %o all
in%eres%e par%ies (us% be (ae. .+e in%eres%e par%ies in %+e $ase 8ere 9no8n %o resie in %+e *+ilippines. .+e e)ien$e
s+o8s %+a% no su$+ no%i$e 8as re$ei)e by %+e in%eres%e par%ies resiin3 in %+e *+ilippines
.+e orer o4 %+e (uni$ipal is%ri$% $our% o4 A(oy, -+ina, oes no% purpor% %o proba%e or allo8 %+e 8ill 8+i$+ 8as
%+e sub7e$% o4 %+e pro$eein3s. 1n )ie8 %+ereo4, %+e 8ill an %+e alle3e proba%e %+ereo4 $anno% be sai %o +a)e been one
in a$$oran$e 8i%+ %+e a$$ep%e basi$ an 4una(en%al $on$ep%s an prin$iples 4ollo8e in %+e proba%e an allo8an$e o4
8ills. -onse5uen%ly, %+e au%+en%i$a%e %rans$rip% o4 pro$eein3s +el in %+e (uni$ipal is%ri$% $our% o4 A(oy, -+ina, $anno%
be ee(e an a$$ep%e as pro$eein3s leain3 %o %+e proba%e or allo8an$e o4 a 8ill an, %+ere4ore, %+e 8ill re4erre %o
%+erein $anno% be allo8e, 4ile an re$ore by a $o(pe%en% $our% o4 %+is $oun%ry.
'4CICIC %IC)A9ISI49 LI9E! I9C " 1EL )AS4)IA
>) 9o L-5150 Acto$er &+! 1950
1octrine, 1n orer %+a% ser)i$es (ay be e44e$%e upon pri)a%e $orpora%ions, i% is re5uire %+a% %+e 4orei3n $orpora%ion be
one 8+i$+ is doing business in the Philippines. .+is is a sine qua non re5uire(en%. .+is 4a$% (us% be 4irs% es%ablis+e in
orer %+a% su((ons $an be (ae an 7urisi$%ion a$5uire.
C4C-S, Al4onsa *elin3on 4ile a $lai( 4or $o(pensa%ion 4or +ersel4 an +er %8o (inor $+ilren 8i%+ %+e :or9(enEs
-o(pensa%ion -o((ission a3ains% %+e LuAon '%e)eorin3 -o., 1n$., 8+o re4use %o en%er%ain %+e $lai( on %+e 3roun %+a%
sai $o(pany 8as no% %+e e(ployer o4 %+e e$ease +usban o4 %+e $lai(an%. .+e :or9(enEs -o(pensa%ion
-o((ission, belie)in3 %+a% %+e *a$i4i$ Far 2as% Line, 1n$., a 4orei3n $orpora%ion li$ense %o o business in %+e *+ilippines,
8as an a3en% o4 pe%i%ioner 8i%+ au%+ori%y %o re$ei)e ser)i$e o4 pro$ess, ser)e no%i$e o4 %+e $lai( on an o44i$ial o4 sai
4orei3n $orpora%ion 8+o in %urn 4or8are %+e no%i$e %o pe%i%ioner e)en i4 %+e la%%er 8as no% an a3en% o4, nor 8as i%
au%+oriAe %o a$$ep% ser)i$e o4 pro$ess in be+al4 o4, sai pe%i%ioner. *a$i4i$ 4ile a spe$ial appearan$e 8i%+ %+e :or9(enEs
-o(pensa%ion -o((ission 4or %+e sole purpose o4 as9in3 4or %+e is(issal o4 %+e $lai( on %+e 3roun %+a% %+e
-o((ission +a no 7urisi$%ion o)er i% be$ause i% is a 4orei3n $orpora%ion no% o(i$ile in %+is $oun%ry, i% is no% li$ense %o
en3a3e an is no% en3a3in3 in business %+erein, +as no o44i$e in %+e *+ilippines, an is no% represen%e by any a3en%
au%+oriAe %o re$ei)e su((ons or any o%+er 7ui$ial pro$ess in i%s na(e an be+al4.
Lower Court )ulin*, .+e :or9(enEs -o(pensa%ion -o((ission +as 7urisi$%ion o)er %+e pe%i%ioner. Ben$e, %+e $ase
$an be %rie on i%s (eri%s.
ISS<E,
1. :+e%+er or no%, pe%i%ioner, as a pri)a%e 4orei3n $orpora%ion no% oin3 business in %+e *+ilippines, $an be brou3+%
8i%+in %+e 7urisi$%ion o4 our $our%s by ser)in3 %+e su((ons upon %+e a3en% 8+o represen%e i% in en%erin3 in%o %+e
$on%ra$% o4 e(ploy(en% 8i%+ %+e e$ease +usban.
)4-IA, .+e per%inen% rule %o be $onsiere is se$%ion 1", Rule 7, o4 %+e Rules o4 -our%, 8+i$+ re4ers %o ser)i$e upon
pri)a%e 4orei3n $orpora%ions. .+is se$%ion pro)ies/
'2-. 1". Service upon private foreign corporations. F 14 %+e e4enan% is a 4orei3n $orpora%ion, or a non-resien%
7oin% s%o$9 $o(pany or asso$ia%ion, oin3 business in %+e *+ilippines, ser)i$e (ay be (ae on i%s resien% a3en%
esi3na%e in a$$oran$e 8i%+ la8 4or %+a% purpose, or, i4 %+ere be no su$+ a3en%, on %+e 3o)ern(en% o44i$ial
esi3na%e by la8 %o %+a% e44e$%, or on any o4 i%s o44i$ers or a3en%s 8i%+in %+e *+ilippines.
.+e abo)e se$%ion pro)ies 4or %+ree (oes o4 e44e$%in3 ser)i$es upon a pri)a%e $orpora%ion, na(ely/ >1? by
ser)in3 upon %+e a3en% esi3na%e in a$$oran$e 8i%+ la8 %o a$$ep% ser)i$e o4 su((onsG >2? i4 %+ere be no spe$ial a3en%,
by ser)in3 on %+e 3o)ern(en% o44i$ial esi3na%e by la8 %o %+a% e44e$%G an >3? by ser)in3 on any o44i$er or a3en% 8i%+in %+e
*+ilippines. =u%, i% s+oul be no%e, in orer %+a% ser)i$es (ay be e44e$%e in %+e (anner abo)e s%a%e, sai se$%ion also
re5uires %+a% %+e 4orei3n $orpora%ion be one 8+i$+ is doing business in the Philippines. .+is is a sine qua non re5uire(en%.
.+is 4a$% (us% be 4irs% es%ablis+e in orer %+a% su((ons $an be (ae an 7urisi$%ion a$5uire. .+is is no% only $lear in
%+e rule bu% is re4le$%e in a re$en% e$ision o4 %+is -our%. :e %+ere sai %+a% @as lon3 as 4orei3n pri)a%e $orpora%ion oes
or en3a3es in business in %+is 7urisi$%ion, i% s+oul an 8ill be a(enable %o pro$ess an %+e 7urisi$%ion o4 %+e lo$al
$our%s.@
*e%i%ioner is a $orpora%ion e0$lusi)ely en3a3e in %+e business o4 $arryin3 3oos an passen3ers by sea be%8een
%+e %erri%ory o4 Gua( an %+e .rus% .erri%ories o4 %+e *a$i4i$ 1slans an 4or %+a% purpose i% 8as opera%in3 a 4lee% o4 )essels
plyin3 be%8een %+ose por%s or %erri%ories. *e%i%ioner +as no proper%y or o44i$e in %+e *+ilippines, nor is i% li$ense %o o
business in %+e *+ilippines. An %+e only a$% i% i +ere 8as %o se$ure %+e ser)i$es o4 Lu$eno *elin3on %o a$% as $oo9 an
$+ie4 s%e8ar in one o4 i%s )essels au%+oriAin3 %o %+a% e44e$% %+e LuAon '%e)eorin3 -o., 1n$. a o(es%i$ $orpora%ion.
*e%i%ioner en3a3e %+e ser)i$es o4 *elin3on no% as par% o4 %+e opera%ion o4 i%s business bu% (erely %o e(ploy +i( as
(e(ber o4 %+e $re8 in one o4 i%s s+ips. .+a% a$% apparen%ly is an isola%e one, in$ien%al, or $asual, an @no% o4 a
$+ara$%er %o ini$a%e a purpose %o en3a3e in business@ 8i%+in %+e (eanin3 o4 %+e rule. .+e -o((ission +as no 7urisi$%ion
o)er %+e pe%i%ioner an, %+ere4ore, %+e presen% pro$eein3s $anno% $on%inue an s+oul be is(isse.
2I9> %4< 3< " C)49CISCA S;CI'
>) 9o L-5795 4pril &+! 1950
Doctrine: ) non"resident may sue a resident in the courts of this country where the defendant may be summoned and his
property leviable upon e*ecution in the case of a favorable, final, and e*ecutory +udgment.
C4C-S, .+is is an a$%ion %o $olle$% 4ile by Din3 &a8 :u a3ains% Fran$is$o 'y$ip 4or %+e a(oun% o4 *59,082.92, %o3e%+er
8i%+ la84ul in%eres%s 4ro( 1" #$%ober 19"7, %+e a%e o4 %+e 8ri%%en e(an 4or pay(en%, an $os%s.
Din3 &au :uu, a3en% o4 Fran$is$o 'y$ip, sol an eli)ere 1,000 %ons o4 $o$onu% oil e(ulsion %o !as &a08ell
Fasse%. Fasse% in %urn assi3ne i% %o For%rae -orpora%ion. 6ner an a3en$y a3ree(en% e0e$u%e in Ne8 ;or9, 8+i$+ 8as
aresse an a$$ep%e by Fran$is$o 'y$ip on No)e(ber 22, 19"5, Din3 &au :u 8as (ae %+e e0$lusi)e a3en% o4 'y$ip
in %+e sale o4 $o$onu% oil an i%s eri)a%ies ou%sie %+e *+ilippines an 8as %o be pai 2 H per$en% on %+e a$%ual sale pri$e
o4 sales ob%aine %+ru +is e44or%s, in ai%ion %o 50 per$en% o4 %+e i44eren$e be%8een %+e au%+oriAe sale pri$e an %+e
a$%ual sale pri$e.
Din3 &au :u $lai(s %+a% 4or %+e sale %o Fasse%, +e is en%i%le uner %+e a3en$y $on%ra$% %o a $o((ission o4 2 H
per$en% on %+e %o%al a$%ual sale pri$e o4 1,000 %ons o4 $o$onu% oil e(ulsion an 50 per $en% o4 %+e i44eren$e be%8een %+e
au%+oriAe sale pri$e o4 I350 per %on an %+e a$%ual sellin3 pri$e o4 I"00 per %on. As 'y$ip alreay (ae pre)ious
pay(en%s, Din3 &au :u is 7us% $olle$%in3 on balan$e pay(en%s ue %o +i(.
'y$ip, on %+e o%+er +an, $on%ens %+a% %+e sales %ransa$%ion 8as no% $o)ere by %+e a3en$y $on%ra$% a%e
No)e(ber 22 as %+e sales 8as a3ree upon on #$%ober 16 an %+a% i% 8as an inepenen% an separa%e %ransa$%ion 4or
8+i$+ Din3 &au :u +a been uly $o(pensa%e.
Lower Court )ulin*, Renere 7u3(en% in 4a)or o4 Din3 &au :u an enie bo%+ %+e (o%ion 4or re$onsiera%ion an
ne8 %rial 4ile by 'y$ip. 'y$ip 4ile an appeal, $on%enin3 %+a% %+e -our% o4 Firs% 1ns%an$e o4 &anila +as no 7urisi$%ion o)er
%+e $ase as %+e a3en$y $on%ra$% 8as e0e$u%e in Ne8 ;or9.
ISS<E, :+e%+er or no% %+e -our% o4 Firs% 1ns%an$e o4 &anila +as 7urisi$%ion.
)4-IA, -F1 +as 7urisi$%ion. A non-resien% (ay sue a resien% in %+e $our%s o4 %+is $oun%ry 8+ere %+e e4enan% (ay be
su((one an +is proper%y le)iable upon e0e$u%ion in %+e $ase o4 a 4a)orable, 4inal, an e0e$u%ory 7u3(en%. 1% is a
personal a$%ion 4or %+e $olle$%ion o4 a su( o4 (oney 8+i$+ %+e -our%s o4 Firs% 1ns%an$e +a)e 7urisi$%ion %o %ry an e$ie.
.+ere is no $on4li$% o4 la8s in)ol)e in %+e $ase, be$ause i% is only a 5ues%ion o4 en4or$in3 an obli3a%ion $rea%e by or
arisin3 4ro( $on%ra$%G an unless %+e en4or$e(en% o4 %+e $on%ra$% be a3ains% publi$ poli$y o4 %+e 4oru(, i% (us% be
en4or$e.
.+e plain%i44 is en%i%le %o $olle$% *7,589.88 4or $o((ission an *50,000 4or one-+al4 o4 %+e o)erpri$e, or a %o%al o4
*57,589.88, la84ul in%eres%s %+ereon 4ro( %+e a%e o4 %+e 4ilin3 o4 %+e $o(plain%, an $os%s in bo%+ ins%an$es.
S4L<1 ) 4)C4 and 4LC)E1A .4@IE) .)! " 4LC)E1A .4@IE)!
>) 9o L-6567 .ul/ +1! 1950
Doctrine: ,ne of the essential conditions for the validity of a decree of divorce is that the court must have +urisdiction over
the sub+ect matter and in order that this may be acquired, plaintiff must be domiciled in good faith in the State in which it is
granted
C4C-S, Al4reo !a)ier >Al4reo? 8as a na%i)e born $i%iAen o4 %+e *+ilippines 8+o, in 1937, (arrie 'alu R. Ar$a >'alu?,
ano%+er Filipino $i%iAen. =e4ore %+eir (arria3e %+ey +a alreay a $+il, Al4reo !a)ier, !r., 8+o %+ereby be$a(e
le3i%i(a%e. 1n 1927 appellan% enlis%e in %+e 6.'. Na)y an in 1938 saile 4or %+e 6ni%e '%a%es aboar a na)y s+ip in
$onne$%ion 8i%+ +is ser)i$e lea)in3 be+in +is 8i4e an $+il, an on Au3us% 13, 19"0, +e 4ile an a$%ion 4or i)or$e in %+e
-ir$ui% -our% o4 &obile -oun%y, Alaba(a, 6.'.A., alle3in3 as 3roun abanon(en% by +is 8i4e. Ba)in3 re$ei)e a $opy o4
%+e $o(plain%, 'alu 4ile an ans8er alle3in3, a(on3 o%+er %+in3s, %+a% appellan% 8as no% a resien% o4 &obile -oun%y, bu%
o4 Nai$, -a)i%e, *+ilippines, an %+a% i% 8as no% %rue %+a% %+e $ause o4 %+eir separa%ion 8as abanon(en% on +er par% bu%
%+a% appellan% 8as in %+e 6ni%e '%a%es, 8i%+ou% +er, be$ause +e 8as %+en enlis%e in %+e 6.'. Na)y. Ne)er%+eless, %+e
-ir$ui% -our% o4 &obile -oun%y renere 7u3(en% 3ran%in3 appellan% a e$ree o4 i)or$e on April 9, 19"1. A4%er se$urin3 a
i)or$e Al4reo (arrie .+el(a Fran$is, an A(eri$an $i%iAen. .+e la%%er, +o8e)er, ob%aine a i)or$e 4ro( +i( 4or
reasons no% is$lose by %+e e)ien$e. Al4reo !a)ier re%urne %o %+e *+ilippines ar(e 8i%+ %8o e$rees o4 i)or$e F
one a3ains% +is 4irs% 8i4e 'alu R. Ar$a an %+e o%+er a3ains% +i( by +is se$on 8i4e .+el(a Fran$is. :+en re%urne %o
%+e *+ilippines an (arrie &aria #)ina o4 Nai$, -a)i%e. A% %+e ins%an$e o4 plain%i44 'alu R. Ar$a an in4or(a%ion 4or
bi3a(y 8as 4ile by %+e -i%y Fis$al o4 &anila on !uly 25, 1950 a3ains% e4enan% Al4reo !a)ier.
Lower Court )ulin*, Al4reo 8as a$5ui%%e o4 %+e $+ar3e o4 =i3a(y prei$a%e on %+e proposi%ion %+a% %+e (arria3e o4
e4enan% Al4reo !a)ier 8i%+ %+e &aria #)ina 8as (ae in all 3oo 4ai%+ an in %+e +ones% belie4.
ISS<ES,
1. ,oes %+is e$ree +a)e a )ali e44e$% in %+is 7urisi$%ionJ C N#
2. :+e%+er Al4reo is 3uil%y o4 bi3a(y C ;2'
)4-IA, .+is $our% +as +a alreay o$$asion %o pass upon 5ues%ions o4 si(ilar na%ure in a nu(ber o4 $ases an i%s rulin3
+as in)ariably been %o eny )alii%y %o %+e e$ree. 1n essen$e, i% 8as +el %+a% one o4 %+e essen%ial $oni%ions 4or %+e
)alii%y o4 a e$ree o4 i)or$e is %+a% %+e $our% (us% +a)e 7urisi$%ion o)er %+e sub7e$% (a%%er an in orer %+a% %+is (ay be
a$5uire, plain%i44 (us% be o(i$ile in 3oo 4ai%+ in %+e '%a%e in 8+i$+ i% is 3ran%e >-ousins Bi0 vs. Flue(er, 55 *+il.,
851, 856?.
1% is %rue %+a% 'alu R. Ar$a 4ile an ans8er in %+e i)or$e $ase ins%i%u%e a% %+e &obile -oun%y in )ie8 o4 %+e
su((ons ser)e upon +er in %+is 7urisi$%ion, bu% %+is a$%ion $anno% be in%erpre%e as pla$in3 +er uner %+e 7urisi$%ion o4
%+e $our% be$ause i%s only purpose 8as %o i(pu3n %+e $lai( o4 appellan% %+a% +is o(i$ile or le3al resien$e a% %+a% %i(e
8as &obile -oun%y, an %o s+o8 %+a% %+e 3roun o4 eser%ion i(pu%e %o +er 8as baseless an 4alse. 'u$+ ans8er s+oul
be $onsiere as a spe$ial appearan$e %+e purpose o4 8+i$+ is %o i(pu3n %+e 7urisi$%ion o4 %+e $our% o)er %+e $ase.
1n e$iin3 %+e -anson $ase, %+is $our% i no% o)erloo9 %+e o%+er $ases pre)iously e$ie on %+e (a%%er, bu%
pre$isely %oo9 3oo no%e o4 %+e(. A(on3 %+e $ases in)o9e are -amire$ vs. .mur, "2 *+il. 855G -ousins Bi0 vs.
Flue(er, 55 *+il., 851, an /arretto .on$ales vs. .on$ales, 58 *+il., 67.
1n %+e $ases 7us% (en%ione, %+is $our% lai o8n %+e 4ollo8in3 o$%rines/
1% is es%ablis+e by %+e 3rea% 8ei3+% o4 au%+ori%y %+a% %+e $our% o4 a $oun%ry in 8+i$+ nei%+er o4 %+e spouses is
o(i$ile an %o 8+i$+ one or bo%+ o4 %+e( (ay resor% (erely 4or %+e purpose o4 ob%ainin3 a i)or$e +as no
7urisi$%ion %o e%er(ine %+eir (a%ri(onial s%a%usG an a i)or$e 3ran%e by su$+ a $our% is no% en%i%le %o
re$o3ni%ion else8+ere. >See No%e %o 'u$$ession o4 =en%on, 59 L. R. A., 1"3? .+e )olun%ary appearan$e o4 %+e
e4enan% be4ore su$+ a %ribunal oes no% in)es% %+e $our% 8i%+ 7urisi$%ion. >Anre8s vs. Anre8s, 188 6. '., 1"G
"7 L. e., 366.?
1% 4ollo8s %+a%, %o 3i)e a $our% 7urisi$%ion on %+e 3roun o4 %+e plain%i44Es resien$e in %+e '%a%e or $oun%ry o4 %+e
7ui$ial 4oru(, +is resien$e (us% be bona fide. >1" -y$. 817, 181.?@ >Ra(ireA vs. G(ur, 82 *+il., 855.?
=u% e)en i4 +is resien$e +a been %a9en up is 3oo 4ai%+, an %+e $our% +a a$5uire 7urisi$%ion %o %a9e
$o3niAan$e o4 %+e i)or$e sui%, %+e e$ree issue in +is 4a)or is no% binin3 upon %+e appellan%G 4or %+e
(a%ri(onial o(i$ile o4 %+e spouses bein3 %+e -i%y o4 &anila, an no ne8 o(i$ile +a)in3 been a$5uire in :es%
Kir3inia, %+e su((ons (ae by publi$a%ion, s+e no% +a)in3 en%ere an appearan$e in %+e $ase, ei%+er personally
or by $ounsel, i no% $on4er 7urisi$%ion upon sai $our% o)er +er person. >-ousins Bi0 vs. Flue(er, 55 *+il.,
851.?
A% all %i(es %+e (a%ri(onial o(i$ile o4 %+is $ouple +as been 8i%+in %+e *+ilippine 1slans an %+e resien$e
a$5uire in %+e '%a%e o4 Ne)aa by %+e +usban 4or %+e purpose o4 se$urin3 a i)or$e 8as no% a bona 4ie
resien$e an i no% $on4er 7urisi$%ion upon %+e $our% o4 %+e '%a%e %o issol)e %+e bons o4 (a%ri(ony in 8+i$+
+e +a en%ere in 1919. >=arre%%o GonAales vs. GonAales, 58 *+il., 67.?
1n %+e li3+% o4 %+e 4ore3oin3 au%+ori%ies, i% $anno% %+ere4ore be sai %+a% %+e &obile -oun%y -our% o4 Alaba(a +a
a$5uire 7urisi$%ion o)er %+e $ase 4or %+e si(ple reason %+a% a% %+e %i(e i% 8as 4ile appellan%Es le3al resien$e 8as %+en in
%+e *+ilippines. Be $oul no% +a)e a$5uire le3al resien$e or o(i$ile a% &obile -oun%y be$ause a% %+a% %i(e +e 8as s%ill
in %+e ser)i$e o4 %+e 6.'. Na)y an (erely ren%e a roo( 8+ere +e use %o s%ay urin3 +is o$$asional s+ore lea)e 4or s+i4%
u%y. .+a% +e ne)er in%ene %o li)e %+ere per(anen%ly is s+o8n by %+e 4a$% %+a% a4%er +is (arria3e %o .+el(a Fran$is in
19"1, +e (o)e %o Ne8 ;or9 an a4%er +is i)or$e 4ro( .+el(a in 19"9 an +is re%ire(en% 4ro( %+e 6.'. Na)y, +e
re%urne %o %+e *+ilippines an (arrie &aria #)ina o4 Nai$, -a)i%e, 8+ere +e li)e e)er sin$e. 1% (ay %+ere4ore be sai
%+a% appellan% 8en% %o &obile -oun%y, no% 8i%+ %+e in%en%ion o4 per(anen%ly resiin3 %+ere, or o4 $onsierin3 %+a% pla$e as
+is per(anen% aboe, bu% 4or %+e sole purpose o4 ob%ainin3 i)or$e 4ro( +is 8i4e. 'u$+ resien$e is no% su44i$ien% %o $on4er
7urisi$%ion on %+e $our%.
4'ALI94)IA > 1E LAS S49-AS and IS4#ELA 4S-)4D<ILLA! " . 8A34)1 %C>)4-8 4--A)9E;
>E9E)4L AC -8E <9I-E1 S-4-ES! S<CCESSA) -A -8E '8ILI''I9E 4LIE9 ')A'E)-; 41%I9IS-)4-IA9 AC
-8E <9I-E1 S-4-ES! )E'<#LIC AC -8E '8ILI''I9ES!
>) 9o L-0717 Ce$ruar/ &7! 1955
Doctrine: The failure of the Philippine government to incorporate its provisions in our statute boo0s, for a period of almost
12 years, is, to our mind, clear proof of the unwillingness of our department to change the policy set forth in section 32 of
)ct 4o. 5126.
C4C-S, .+is a$%ion in)ol)es %+e %i%le %o 1,600,000 s+ares o4 s%o$9 o4 %+e Lepan%o -onsolia%e &inin3 -o., 1n$. *lain%i44s
$on%en %+a% ,e los 'an%os bou3+% 55,000 s+ares 4ro( !uan -a(pos, in &anila, early in ,e$e(ber, 19"2G %+a% +e bou3+%
300,000 s+ares 4ro( -arl BessG an %+a%, be4ore -+ris%(as o4 19"2, +e bou3+% 800,000 s+ares 4ro( -arl Bess, %+is %i(e
4or %+e a$$oun% an bene4i% o4 As%ra5uillo. =y )ir%ue o4 )es%in3 *-12, a%e February 18, 19"5, %i%le %o %+e 1,600,000 s+ares
o4 s%o$9 in ispu%e 8as, +o8e)er, )es%e in %+e Alien *roper%y -us%oian o4 %+e 6. '. >+ereina4%er re4erre %o as %+e
*roper%y -us%oian? as !apanese proper%y. Ben$e, plain%i44s 4ile %+eir respe$%i)e $lai(s 8i%+ %+e *roper%y -us%oian. 1n
ue $ourse, %+e Kes%e *roper%y -lai(s -o((i%%ee o4 %+e *+ilippine Alien *roper%y A(inis%ra%ion (ae a
@e%er(ina%ion,@ a%e &ar$+ 9, 19"8, allo8in3 sai $lai(s, 8+i$+ 8ere $onsiere an +ear 7oin%ly as -lai( No. 535,
bu%, upon personal re)ie8, %+e *+ilippine Alien *roper%y A(inis%ra%ion (ae by sai -o((i%%ee an e$ree %+a% @%i%le %o
%+e s+ares in 5ues%ion s+all re(ain in %+e na(e o4 %+e *+ilippine Alien *roper%y A(inis%ra%or.@ -onse5uen%ly, plain%i44s
ins%i%u%e %+e presen% a$%ion %o es%ablis+ %i%le %o %+e a4ore(en%ione s+ares o4 s%o$9 an pray %+a% 7u3(en% be renere
e$larin3 %+e( la84ul o8ners o4 sai s+ares o4 s%o$9, 8i%+ su$+ i)iens, pro4i%s an ri3+%s as (ay +a)e a$$rue %+ere%oG
re5uirin3 %+e e4enan% %o rener a$$oun%s an %o %rans4er sai s+ares o4 s%o$9 %o plain%i44sE na(esG an sen%en$in3 %+e
4or(er %o pay %+e $os%s.
.+e e4enan% +erein, A%%orney General o4 %+e 6. '., su$$essor %o %+e @A(inis%ra%or@, $on%ens %+a% prior %o %+e
ou%brea9 o4 %+e 8ar in %+e *a$i4i$, sai s+ares o4 s%o$9 8ere bou3+% by Ki$en%e &ari3al, in %rus% 4or, an 4or %+e bene4i% o4,
%+e &i%sui =ussan Dais+a >+ereina4%er re4erre %o as %+e @&i%suis@?, a $orpora%ion or3aniAe in a$$oran$e 8i%+ %+e la8s o4
!apan, %+e %rue o8ner %+ereo4, 8i%+ bran$+ o44i$e in %+e *+ilippinesG %+a% on or be4ore &ar$+, 19"2, &ari3al eli)ere %+e
$orresponin3 s%o$9 $er%i4i$a%es, 8i%+ +is blan9 inorse(en% %+ereon, %o %+e &i%suis, 8+i$+ 9ep% sai $er%i4i$a%es, in %+e 4iles
o4 i%s o44i$e in &anila, un%il %+e libera%ion o4 %+e la%%er by %+e A(eri$an 4or$es early in 19"5G %+a% %+e &i%suis +a ne)er sol,
or o%+er8ise ispose o4, sai s+ares o4 s%o$9G an %+a% %+e s%o$9 $er%i4i$a%es a4ore(en%ione (us% +a)e been s%olen or
loo%e, %+ere4ore, urin3 %+e e(er3en$y resul%in3 4ro( sai libera%ion.
Lower Court )ulin*, !u3(en% 8as renere in 4a)or o4 %+e plain%i44s
ISS<E,
1. :+e%+er plain%i44s +a pur$+ase %+e s+ares o4 s%o$9 in 5ues%ion.- N#
)4-IA, 1% appears 4ro( %+e e)ien$e presen%e %+a% %+e only e)ien$e on %+e alle3e sale o4 %+e s+ares o4 s%o$9 in
5ues%ion %o %+e plain%i44s F %+e (ain issue in %+e $ase a% bar F is %+e %es%i(ony o4 Apolinario e los 'an%os, 8+o no8
$lai(s %o be %+e sole o8ner %+ereo4.
.+us, %+e issue is base, an (us% s%an or 4all, %+ere4ore, upon %+e un$orrobora%e %es%i(ony o4 plain%i44
Apolinario e los 'an%os, an %+e $reen$e an 8ei3+% %+a% (ay be 3i)en %+ere%o. 6pon a re)ie8 o4 %+e re$or, 8e 4in,
+o8e)er, %+a% sai %es%i(ony is +i3+ly i(probable an in+eren%ly 8ea9.
.+e s%a%us o4 5uasi-ne3o%iabili%y 3enerally a$$ore %o, an a% presen% en7oye by, $er%i4i$a%es o4 s%o$9, uner %+e
*+ilippine la8, is in i%sel4 a re$o3ni%ion o4 %+e 4a$% %+a% %+e $er%i4i$a%es are non"negotiable. 1ns%ea o4 sus%ainin3 appelleesE
$lai(, se$%ion 5 o4 %+e uni4or( '%o$9 .rans4er A$%, 8+i$+ @3i)es 4ull ne3o%iabili%y %o $er%i4i$a%es o4 s%o$9,@ refutes sai $lai(
an $on4ir(s the non"negotiable character of stoc0 certificates in the absence of said nifrom )ct , 4or, ob)iously, %+e
sa(e $oul no% +a)e 3i)en, ne3o%iabili%y %o an ins%ru(en% alreay possessin3 %+is a%%ribu%e prior %+ere%o. A3ain, apar% 4ro(
bein3 distinct 4ro( %+e general -orpora%ion La8, %+e a4ore(en%ione 6ni4or( A$% is no% in 4or$e in %+e *+ilippines. 1n %+is
$onne$%ion, i% s+oul be no%e %+a% %+is special pie$e o4 le3isla%ion 8as aop%e in so(e s%a%es o4 %+e union as early as %+e
year 1910. .+e 4ailure o4 %+e *+ilippine 3o)ern(en% %o in$orpora%e i%s pro)isions in our s%a%u%e boo9s, 4or a perio o4
al(os% "5 years, is, %o our (in, $lear proo4 o4 %+e un8illin3ness o4 our epar%(en% %o $+an3e %+e poli$y se% 4or%+ in se$%ion
35 o4 A$% No. 1"59. Neeless %o say, %+is 4a$% ne3a%es our au%+ori%y F 8+i$+ is li(i%e %o %+e in%erpre%a%ion o4 %+e la8, an
i%s appli$a%ion, with all its imperfections F %o abanon 8+a% %+e issen%in3 opinion $+ara$%eriAes as %+e @$i)il la8
s%anpoin%,@ an subs%i%u%e, in lieu %+ereo4, %+e $o((er$ial )ie8poin%, by applyin3 sai se$%ion 5 o4 %+e 6ni4or( '%o$9
.rans4er A$%, al%+ou3+ no% a par% o4 %+e la8 o4 %+e lan. 1nee, e)en in (a%%ers 3enerally $onsiere as 4allin3 8i%+in
@$o((er$ial %erri%ory@, %+e Ro(an La8 $on$ep% +as no% 3i)en 8ay in %+e *+ilippines %o %+e -o((on La8 approa$+,
e0$ep% 8+en %+ere is e*plicit s%a%u%ory pro)ision %o %+e $on%rary.
C4;E-49A # LI3494>! " )A#E)- S 84%ILL! E- 4L
>) 9o L-5771 Ce$ruar/ &5! 1956
Doctrine: 7aws of the Philippines continue to be in force in said bases e*cept when otherwise agreed upon in an
agreement.
C4C-S, Rober% '. Ba(ill, &a7or, 6'AF, Assis%an% =ase *ro)os% &ars+al, -lar9 Air For$e =ase, pro)in$e o4 *a(pan3a,
4ile an a(ene $o(plain% a3ains% Li8ana3 4or )iola%ion o4 se$%ion 17" o4 %+e 1n%ernal Re)enue -oe. 1% is alle3e in %+e
a(ene $o(plain% %+a% Li8ana3, La pri)a%e ini)iual, 8i%+ou% au%+ori%y 8+a%soe)er, an 8i%+ou% payin3 %+e
$orresponin3 spe$i4i$ %a0 o4 .:# *2'#' >*2? per $ar%oon, i %+en an %+ere 8ill4ully, unla84ully an 4eloniously,
possess an +a)e in +is $on%rol se)en%een $ar%oons o4 i(por%e 4ree o4 %a0 A(eri$an $i3are%%es 4or use only o4 %+e 6'
&ili%ary an Na)al For$es s%a%ione in %+e *+ilippines.M .+e $o(plain% 8as subs$ribe an s8orn %o be4ore !u3e LorenAo
,. Li$up. -ounsel 4or Li8ana3 (o)e %o 5uas+ %+e $o(plain% in %+e !us%i$e o4 %+e *ea$e -our%, bu% %+is 8as enie.
.+ereupon Li8ana3 4ile a pe%i%ion 4or pro+ibi%ion 8i%+ %+e -our% o4 Firs% 1ns%an$e, alle3in3 %+a% Rober% '. Ba(ill +as no
personal $apa$i%y %o subs$ribe %o %+e $o(plain% an %+e !us%i$e o4 %+e *ea$e $our%, %+ere4ore, a$5uire no 7urisi$%ion %o
$onu$% %+e preli(inary in)es%i3a%ion.
Lower Court )ulin*, Rober% '. Ba(ill is no% a pea$e o44i$er o4 %+e Republi$ o4 %+e *+ilippines an, %+ere4ore, is no%
au%+oriAe %o 4ile a $o(plain% in a$$oran$e 8i%+ se$%ion 2, Rule 106 o4 %+e Rules o4 -our%.
ISS<E,
1. :+e%+er a *ro)os% &ars+al o4 -lar9 Fiel is a pea$e o44i$er o4 %+e Republi$ o4 %+e *+ilippines 8+o is au%+oriAe %o
4ile a $o(plain% 4or )iola%ion o4 %+e 1n%ernal Re)enue -oe. C ;2'.
)4-IA, 1% is a(i%%e %+a% %+e *ro)os% &ars+al o4 -lar9 Fiel is a pea$e o44i$er. *ro)os% &ars+als in Ar(y bases are
poli$e o44i$ers, an %+ey +a)e %+e po8ers an u%ies o4 $+ie4s o4 poli$e in (uni$ipali%ies.
6ner %+e a3ree(en% be%8een %+e Republi$ o4 %+e *+ilippines an %+e 6ni%e '%a%es o4 A(eri$a, 4or %+e
es%ablis+(en% o4 bases by %+e la%%er 8i%+in %+e %erri%ory o4 %+e 4or(er, la8s o4 %+e *+ilippines $on%inue %o be in 4or$e in sai
bases e0$ep% 8+en o%+er8ise a3ree upon in %+e a3ree(en%. An 4or %+e purpose o4 +earin3 $ases %+erein, 7us%i$es o4 %+e
pea$e are appoin%e an +ol o44i$e. .+ey are no% appoin%e by %+e 6ni%e '%a%e o4 A(eri$a, bu% by %+e *resien% o4 %+e
*+ilippines, sub7e$% %o $on4ir(a%ion by %+e -o((ission on Appoin%(en%s. =u% o%+er %+an 7us%i$es o4 %+e pea$e, no o%+er
o44i$ers o4 %+e Republi$ o4 %+e *+ilippines are appoin%e in %+e bases, (u$+ less pea$e o44i$ers, al%+ou3+ a3en%s o4 %+e
Republi$ o4 %+e *+ilippines (ay +a)e a$$ess in %+e bases %o see %+a% %+e la8s o4 %+e *+ilippines are en4or$e.
=u% %+e 5ues%ion o4 pea$e an orer 8i%+in %+e bases is le4% %o pea$e o44i$ers o4 %+e 6ni%e '%a%es o4 A(eri$a, %+e
$+ie4 o4 8+o( is %+e pro)os% (ars+al. .o allo8 pea$e o44i$ers o4 sai Republi$ %o 3o %+erein an (a9e arres%s or ins%i%u%e
prose$u%ions 4or )iola%ion o4 *+ilippine la8s 8oul $er%ainly 3i)e o$$asion 4or $on4li$%s o4 au%+ori%y. 'o no pro)ision is
(ae 4or %+e appoin%(en% o4 pea$e o44i$ers o4 %+e Republi$ o4 %+e *+ilippines 8i%+in %+e bases, an i% is uners%oo %+a%
%+e en4or$e(en% o4 *+ilippines la8s is le4% %o %+e o44i$ers o4 %+e 6ni%e '%a%es o4 A(eri$a.
1% is illo3i$al %o eny %o %+ese pea$e o44i$ers >o4 %+e 6ni%e '%a%es? %+e po8er %o prose$u%e )iola%ions o4 *+ilippine
la8s in %+e (ili%ary bases. 'in$e %+ese bases 8ere es%ablis+e %+e Republi$ o4 %+e *+ilippines +as abs%aine 4ro(
appoin%in3 pea$e o44i$ers o4 i%s o8nG %+is (us% +a)e been 8i%+ %+e uners%anin3 %+a% %+e e0e$u%ion o4 *+ilippine la8s
8oul be %a9en $are o4 %+erein by %+e pea$e o44i$ers o4 %+e 6ni%e '%a%es o4 A(eri$a. .+e absen$e o4 pea$e o44i$ers o4 %+e
Republi$ o4 %+e *+ilippines in %+ese bases is ue %o %+e 4a$% %+a% %+e en4or$e(en% an prose$u%ion o4 o44enses a3ains%
*+ilippine la8s 8as in%ene %o be lo3e 8i%+ %+e pea$e o44i$ers o4 %+e 6ni%e '%a%es o4 A(eri$a.
'4<L %4C1A94L1! E- 4L! " 94-IA94L CI-; #492 AC 9E3 ;A)2
>) 9o L-5991 %a/ &1! 1956
Doctrine: While an unregistered commercial partnership has no +uridical personality, nevertheless, where two or more
persons attempt to create a partnership failing to comply with all the legal formalities, the law considers them as partners
and the association is a partnership in so far as it is a favorable to third persons, by reason of the equitable principle of
estoppel.
C4C-S, *rior %o !une 3, 19"9, Defendant '%asi9ino$ey +a an o)erra4% a$$oun% 8i%+ .+e Na%ional -i%y =an9 o4 Ne8
;or9, a 4orei3n ban9in3 asso$ia%ion uly li$ense %o o business in %+e *+ilippines. #n !une 3, 19"9, %+e o)erra4%
s+o8e a balan$e o4 *6,13".92 a3ains% '%asi9ino$ey or %+e -arinal Ra%%an, 8+i$+ a$$oun%, ue %o %+e 4ailure o4 %+e
par%ners+ip %o (a9e %+e re5uire pay(en%, 8as $on)er%e in%o an orinary loan 4or 8+i$+ %+e $orresponin3 pro(issory
N7oin% no%e non-ne3o%iable< 8as e0e$u%e by Louis F. a -os%a 4or an in %+e na(e o4 %+e -arinal Ra%%an, Louis F. a
-os%a an Alan Gor$ey. .+is 8as se$ure on !une 7, 19"9, by a $+a%%el (or%3a3e e0e$u%e by Louis F. a -os%a, !r.,
General *ar%ner 4or an in %+e na(e o4 '%asi9ino$ey, alle3e %o be a uly re3is%ere *+ilippine par%ners+ip, oin3
business uner %+e na(e an s%yle o4 -arinal Ra%%an.
.+e (or%3a3e ee 8as 4ully re3is%ere by %+e (or%3a3ee on !une 11, 19"9, in %+e #44i$e o4 %+e Re3is%er o4
,ees 4or %+e pro)in$e o4 RiAal, a% *asi3 an a(on3 o%+er pro)isions i% $on%aine %+e 4ollo8in3/ >a? .+a% %+e (or%3a3or
s+all no% sell or o%+er8ise ispose o4 %+e sai $+a%%els 8i%+ou% %+e (or%3a3ee<s 8ri%%en $onsen%G an >b? .+a% %+e
(or%3a3ee (ay 4ore$lose %+e (or%3a3e a% any %i(e, a4%er brea$+ o4 any $oni%ion %+ereo4, %+e (or%3a3or 8ai)in3 %+e 30-
ay no%i$e o4 4ore$losure.
.+e Na%ional -i%y =an9 o4 Ne8 ;or9, -espondent +erein learne %+a% %+e par%ners+ip '%asi9ino$ey %rans4erre %o
:illia( '+ae44er, 4ro( %+e la%%er %o *aul &$,onal, an 4ro( *aul &$,onal %o =en7a(in GonAales, o4 %+e )e+i$les
pre)iously ple3e by '%asi9ino$ey %o %+e -espondent. .+us Responen% 4ile an a$%ion a3ains% '%asi9ino$ey an i%s
alle3e par%ners Gor$ey an ,a -os%a, as 8ell as *aul &$,onal an =en7a(in GonAales, %o re$o)er i%s $rei% an %o
4ore$lose %+e $orresponin3 $+a%%el (or%3a3e. &$,onal an GonAales 8ere (ae Defendants be$ause %+ey $lai(e %o
+a)e a be%%er ri3+% o)er %+e ple3e )e+i$le.
Lower Court )ulin*, !u3(en% in 4a)or o4 %+e -espondent, annullin3 %+e sale o4 %+e )e+i$les in 5ues%ion %o =en7a(in
GonAalesG sen%en$in3 ,a -os%a an Gor$ey %o pay %o %+e -espondent 7oin%ly an se)erally %+e su( o4 *6,13".92, 8i%+
le3al in%eres% 4ro( %+e eb% o4 %+e pro(issory no%e in)ol)eG sen%en$in3 %+e Petitioner GonAales %o eli)er %+e )e+i$les in
5ues%ion %o %+e -espondent 4or sale a% publi$ au$%ion i4 ,a -os%a an Gor$ey s+oul 4ail %o pay %+e (oney 7u3(en%G an
sen%en$in3 ,a -os%a, Gor$ey an '+ae44ers %o pay %o %+e -espondent 7oin%ly an se)erally any e4i$ien$y %+a% (ay
re(ain unpai s+oul %+e pro$ees o4 %+e sale no% be su44i$ien%G an sen%en$in3 Gor$ey, ,a -os%a, &$,onal an
'+ae44er %o pay %+e $os%s.
4ppellate Court )ulin*, .+e e$ision appeale 4ro( is a44ir(e bu% (oi4ie as %o )ppellant :illia( '+ae44er in %+e
obli3a%ion o4 payin3, 7oin%ly an se)erally, %o3e%+er 8i%+ Alan :. Gor$ey an Louis F. a -os%a, !r., any e4i$ien$y %+a%
(ay re(ain unpai a4%er applyin3 %+e pro$ees o4 %+e sale o4 %+e sai (o%or )e+i$les 8+i$+ s+all be uner%a9en upon %+e
lapse o4 90 ays 4ro( %+e a%e %+is e$ision be$o(es 4inal, i4 by %+en Defendants Louis F. a -os%a, !r., an Alan :.
Gor$ey +a no% pai %+e a(oun% o4 %+e 7u3(en% eb%.
ISS<E,
1. :+e%+er an unre3is%ere $o((er$ial $o-par%ners+ip 8+i$+ +as no inepenen% 7urii$al personali%y $an +a)e a
No(i$ile so %+a% a $+a%%el (or%3a3e re3is%ere in %+a% No(i$ile< 8oul bin %+ir persons 8+o are inno$en%
pur$+asers 4or )alue C;2'
)4-IA, :+ile an unre3is%ere $o((er$ial par%ners+ip +as no 7urii$al personali%y, ne)er%+eless, 8+ere %8o or (ore
persons a%%e(p% %o $rea%e a par%ners+ip 4ailin3 %o $o(ply 8i%+ all %+e le3al 4or(ali%ies, %+e la8 $onsiers %+e( as par%ners
an %+e asso$ia%ion is a par%ners+ip in so 4ar as i% is a 4a)orable %o %+ir persons, by reason o4 %+e e5ui%able prin$iple o4
es%oppel. 1n Bun3-&an ;o$ )s. Dien3--+ion3-'en3, 6 *+il., "98, i% 8as +el %+a% al%+ou3+ Li% +as no le3al s%anin3, i% is a
par%ners+ip e 4a$%o an %+e 3eneral pro)isions o4 %+e -oe appli$able %o all par%ners+ips apply %o i%.M
C< <9.IE9> SA9S @ #A4)1 AC -4B 4''E4LS
>) 9o L-6&96 Septem$er &9! 1956
Doctrine: &ommonwealth )ct 4o. 188 94ational (nternal -evenue &ode: does not authori$e deductions for war losses
which were compensated by the War Damage &ommission since such compensation does not fall within the purview of
;compensation by insurance or otherwise,< as the .S. .overnment was not under any legal obligation to do so, until .S.
&ongress passed the Philippine -ehabilitation )ct of 5618 9Public 7aw 3=>:.
C4C-S, -u 6n7ien3 'ons >-6'? is a o(es%i$ $orpora%ion. &ore %+an 70O o4 i%s $api%al s%o$9 is o8ne by Filipino
$i%iAens.
#n February 19"8, -6' 4ile 8i%+ %+e *+ilippine :ar ,a(a3e -o((ission >-o((ission? a $lai( 4or
$o(pensa%ion in a$$oran$e 8i%+ %+e *+ilippine Re+abili%a%ion A$% o4 19"5. .+e *1,079,388.05 $lai( is base on alle3e
losses sus%aine urin3 %+e ba%%le o4 libera%ion o4 &anila an o%+er par%s o4 %+e *+ilippines. #4 %+e su( $lai(e, only
*671,770.19 8as appro)e by %+e -o((ission an *"70,239.19 8ill be pai.
#n !une 15, 1950, -'6 re$ei)e a 6.'. .reasury :arran% 4or *202, 531.06 as par%ial pay(en% o4 %+e appro)e
$lai(. Ano%+er .reasury :arran% 4or *151,1".31 8as %rans(i%%e on No)e(ber 8, 1950. .o3e%+er 8i%+ %+e se$on $+e$9,
-6' 8as no%i4ie %+a% i% 8oul be %+e las% pay(en% %o be (ae by %+e -o((ission $o)erin3 -6'<s $lai( unless %+e 6.'.
-on3ress (a9es 4ur%+er appropria%ion %+ere4ore.
1n i%s in$o(e %a0 re%urns 4or %+e years 19"5-1950, -6' i no% pay in$o(e %a0 4or %+e years 19"5-19"6 an i%
eu$%e 8ar losses in %+e years 19"5-19"7. Bo8e)er, %+e -o((issioner on 1n%ernal Re)enue >-1R? isallo8e
eu$%ions 4or 8ar losses $lai(e by -6' 4or %+e years 19"6 an 19"7 on %+e 3roun %+a% all 8ar losses sus%aine by
-6' s+oul +a)e been $lai(e as a eu$%ion 4or %+e year 19"5 8+en %+e sai losses 8ere a$%ually sus%aine, pursuan%
%o %+e Na%ional 1n%ernal Re)enue -oe >N1R-?. -6' (ain%ains %+a% %+e sai losses 8ere $o(pensa%e by Linsuran$e or
o%+er8ise,M an %+a% sin$e no%i$e 8as 3i)en by %+e -o((ission in 1950, i% 4ollo8s %+a% %+e losses in 5ues%ion 8ere no%
$+ar3eable as eu$%ions in %+e year 19"5.
Commissioner of Internal )e"enue )ulin*, .+e losses 8ere no% $o(pensa%e 4or by insuran$e or o%+er8ise, an %+a%,
a$$orin3ly, %+e $orresponin3 eu$%ion 8as per(issible in 19"5 only.
#oard of -ax 4ppeals )ulin*, A44ir(e -1R Rulin3.
ISS<E,
1. :+e%+er %+e losses su44ere by -6' in 19"5 8ere eu$%ible, 4or in$o(e %a0 purposes, in 19"5, 8+en %+e losses
8ere p+ysi$ally sus%aine, or in 1950, 8+en -6' 8as a)ise by %+e -o((ission %+a% no pay(en%s, o%+er %+an
%+ose (ae by %+e -o((ission in !une an No)e(ber 1950, 8oul be (ae 4or sai losses.
)4-IA, .+e e%er(ina%ion o4 %+is 5ues%ion +in3es on %+e in%erpre%a%ion an $ons%ru$%ion o4 'e$. 30 o4 %+e N1R-, as
i(ple(en%e by Re)enue Re3ula%ion No. 2. A$$orin3 %o %+e la8, %+e losses in 5ues%ion $oul only be $+ar3e o44 in %+e
in$o(e %a0 re%urn 4or %+e year 19"5, unless $o(pensa%e 4or by Linsuran$e or o%+er8ise.M
:i%+ re3ar %o %+e 5ues%ion on 8+e%+er %+e losses a4ore(en%ione 8ere L$o(pensa%e 4or by insuran$eM in 19"5,
-6' relies upon 'e$%ion 5>3? o4 an A$% o4 -on3ress o4 %+e 6ni%e '%a%es o4 &ar$+ 27, 19"2 >*ubli$ La8 506?. .+e
pro)ision au%+oriAes %+e Re$ons%ru$%ion Finan$e -orpora%ion %o e(po8er %+e :ar ,a(a3e -orpora%ion L%o use i%s 4un %o
pro)ie, %+rou3+ insuran$e, reinsuran$e or o%+er8ise, reasonable pro%e$%ion a3ains% loss o4, or a(a3e %o, proper%y 8+i$+
(ay resul% 4ro( ene(y a%%a$9M an %+a% Lsu$+ pro%e$%ion s+all be (ae a)ailable upon pay(en% o4 su$+ pre(iu( or o%+er
$+ar3e as %+e -o((ission (ay es%ablis+.M 1n orer %o $o(e uner sai pro)ision, %+ere (us% be >1? Linsuran$e,
reinsuran$e, or o%+er8iseM an >2? Lpay(en% o4 su$+ pre(iu( or o%+er $+ar3e as %+e :ar ,a(a3e -orpora%ion (ay
es%ablis+.M Nei%+er re5uire(en% is presen% in %+e $ase a% bar. Ben$e, -6' is no% en%i%le %o %+e bene4i%s o4 %+e *ubli$ La8
506.
-6' insis%s %+a% i%s proper%y 8ere, in e44e$%, $o)ere by a Lspe$ial s%a%u%ory insuran$e,M re3arless o4 any
le3isla%ion %+ereon, be$ause/ >1? on ,e$. 13, 19"1, %+e Feeral Loan A3en$y o4 %+e 6.'. announ$e %+a% %+e
Re+abili%a%ion Finan$e -orpora%ion +a $rea%e %+e :ar ,a(a3e -orpora%ion %o pro)ie pro%e$%ion a3ains% losses
resul%in3 4ro( ene(y a%%a$9 8+i$+ (i3+% be sus%aine by o8ners o4 proper%y in $on%inen%al 6.'.G >2? on ,e$. 23, 19"1,
sai A3en$y 4ur%+er announ$e %+a% %+e :ar 1nsuran$e -orpora%ion 8oul e0%en %+e sa(e pro%e$%ion %o proper%y o8ners
in %+e *+ilippinesG %+ese announ$e(en%s 8ere publis+e in %+e &anila ,ay =ulle%in an 8ere subse5uen%ly $on4ir(e in
raio broa$as%s o4 %+e LKoi$e o4 A(eri$aMG >"? !esse !ones, %+e Feeral Loan A(inis%ra%or o4 %+e 6.'. e$lare %+a% sai
announ$e(en% 8as in%ene as insuran$e poli$yG an, >5? $o(plian$e %+ere8i%+, a$$orin3 %o 'ena%or .yin3s, 8as a
Lle3al obli3a%ionM on %+e par% o4 %+e 6.'. -6' a(i%s %+a% losses sus%aine la%er %+an !uly 1, 19"2, oes no% $o)er losses
or proper%y a(a3e 8+i$+ (ay resul% 4ro( ene(y a%%a$9 >in$luin3 any a$%ion %a9en by (ili%ary, na)al, or air 4or$es o4 %+e
6.'. in resis%in3 ene(y a%%a$9?.
-6' su44ere i%s a4ore(en%ione losses in 19"5, urin3 %+e ba%%le 4or %+e libera%ion o4 %+e *+ilippines by %+e Allie,
espe$ially A(eri$an For$es. .+ose losses 8ere no% %+e resul% o4 ene(y a%%a$9, or o4 a$%ion by %+e ar(e 4or$e o4 %+e
6.'. in resis%in3 ene(y a%%a$9. .+e (ain ene(y 8as !apan, an nei%+er !apan nor any o4 i%s asso$ia%es, 8as a%%a$9in3 in
%+e *+ilippines. 1% is $lear %+ere4ore %+a% %+e losses o4 -6' o no% $o(e 8i%+in %+e pur)ie8 ei%+er o4 *ubli$ La8 506 or o4
%+e announ$e(en%s abo)e(en%ione, an are no% $o(pensa%e 4or by Linsuran$e,M as %+e %er( is use in %+e N1R-.
:+e%+er %+e sai losses $oul no% be eu$%e in 19"5, be$ause %+ey 8ere L$o(pensa%e 4or by insuran$e or
o%+er8ise,M -6' in)o9es %+e *+ilippine Re+abili%a%ion A$% o4 19"6 >*ubli$ La8 370?. .+e la8 8as appro)e, an be$a(e
e44e$%i)e, on April 30, 19"6. 1n orer %o be en%i%le %o e4er eu$%ions 4or losses (a%erially sus%aine 8i%+in a 3i)en year,
%+e ri3+% %o $o(pensa%ion %+ere4or, Lby 8ay o4 insuran$e or o%+er8ise,M i4 any, (us% e0is%s, prior %o %+e en o4 sai year.
-onse5uen%ly, %+e appro)al o4 %+e *+ilippine Re+abili%a%ion A$% o4 19"6 i no% $ons%i%u%e in 19"5 Na $o(pensa%ion< Lby
8ay or insuran$eM an i no% au%+oriAe -6' +erein %o pos%pone, %o ano%+er year, i%s $lai( 4or eu$%ion arisin3 4ro( %+e
8ar losses in 5ues%ion.
1% is also $lai(e %+a% %+e a$%s an e$lara%ions o4 responsible o44i$ials an or3ans o4 %+e 6.'. Go)ern(en% be4ore
%+e en o4 19"5 8ere su$+ as %o $ons%i%u%e L$on$lusi)e assuran$e %+a% proper%y o8ners +a reasonable e0pe$%a%ion %+a%
%+eir 8ar losses 8oul be $o(pensa%e 4or.M Alle3ely, %+is Lreasonable e0pe$%a%ionM su44i$e %o pla$e %+e losses o4 -6',
urin3 19"5, 8i%+in %+e pur)ie8 o4 %+e p+rase L$o(pensa%e 4or P o%+er8iseM %+an by insuran$e uner %+e N1R-. .+e
$on%en%ion is un%enable. L#%+er8iseM in %+e $lause L$o(pensa%e 4or by insuran$e or o%+er8iseM s+oul be $ons%rue %o
re4er %o $o(pensa%ion ue uner a %i%le analo3ous or si(ilar %o insuran$e. 1nas(u$+ as %+e la%%er is a $on%ra$% es%ablis+in3
a le3al obli3a%ion, i% 4ollo8s %+a% in orer %o be ee(e L$o(pensa%ion 4or P o%+er8ise,M %+e losses sus%aine by %+e
%a0payer (us% be $o)ere by a 7ui$ially en4or$eable ri3+%, sprin3in3 4ro( any o4 %+e 7urii$al sour$es o4 obli3a%ion/ la8,
$on%ra$%, 5uasi-$on%ra$%, %or%s, or $ri(e.
1% is no% $on%ene %+a% ine(ni%y 8as ue %o -6' by reason o4 %or%, $ri(e, or 5uasi-$on%ra$%. 6pon %+e o%+er
+an, -6', in 19"5, no ri3+% %o ine(ni%y sprin3in3 4ro( la8, 4or %+e *+ilippine Re+abili%a%ion A$% 8as no% appro)e un%il
April 19"6. .+e press releases an announ$e(en%s 8ere (erely e0pressions o4 a poli$y o4 %+e 20e$u%i)e ,epar%(en% o4
%+e 6.'. .+ey i no% i(ply any in%en% %o in)es%, in %+e o8ners o4 proper%y a(a3es or es%roye in %+e *+ilippines urin3
%+e 8ar, a le3al ri3+% %o e(an ine(ni%y 4ro( %+e 6.'. &oreo)er, %+e pay(en% o4 ine(ni%y by %+e 6.'. ne$essarily
re5uire an appropria%ion o4 publi$ 4uns 8+i$+ $oul be (ae only by an a$% o4 -on3ress o4 %+e 6.'., an, as re3ars
8ar losses or a(a3es sus%aine in %+e *+ilippines Lla%er %+an !uly 1, 19"2,M no su$+ appropria%ion la8 e0is%e a% %+e
$lose o4 19"5 or be4ore. .+e %+eory %+a% %+e announ$e(en%s resul%e in an i(plie $on%ra$% is $learly e)oi o4 (eri%.
&oreo)er, %+e Go)ern(en% o4 %+e 6.'. 8as uner no le3al obli3a%ion %o pay ine(ni%y 4or losses $ause by %+e
ene(y in %+e *+ilippines. Nei%+er 8as i% liable 4or a(a3es $ause by %+e A(eri$an 4or$es urin3 i%s 8ar opera%ions
%+erein, in $on4or(i%y 8i%+ %+e la8s an $us%o(s o4 8ar. -onse5uen%ly, %+e ine(ni%y pro)ie 4or in %+e *+ilippine
Re+abili%a%ion A$% o4 19"5 8as purely an obli3a%ion )olun%arily assu(e solely 4or (oral $onsiera%ions, an i no% e0is%
as a le3al obli3a%ion prior %o %+e appro)al o4 sai A$% on April 30, 19"6.
%4%E)-A CA))E @ ><414L<'E CA))E
>) 9o L-101&7 Acto$er 1+! 1956
Doctrine/ The term ;residence< as used in the rules of court is synonymous with ;domicile.< Thus, merely so+ourning in a
certain area or temporary residence cannot serve as basis for the purpose of determining the venue in civil cases.
C4C-S, &a(ero -orre, plain%i44, is a "" year ol A(eri$an $i%iAen an a resien% o4 Las Ke3as, 6.'. Be is a (as%er
ser3ean% in %+e 6.'. Ar(y. Guaalupe, e4enan%, is "0 years ol an a resien% o4 'a(ar, *+ilippines.
&a(ero brou3+% an a$%ion in %+e -our% o4 Firs% 1ns%an$e o4 &anila see9in3 +is le3al separa%ion 4ro( Guaalupe,
+is 8i4e, an %+e pla$in3 o4 %+eir (inor $+ilren uner %+e $are an $us%oy o4 a repu%able 8o(en<s or(i%ory or ins%i%u%ion
as %+e $our% (ay re$o((en. Guaalupe (o)e %o is(iss %+e $o(plain% on %+e 3roun %+a% %+e )enue is i(properly lai.
'+e $lai(s %+a% sin$e i% appears in %+e $o(plain% %+a% nei%+er &a(ero nor Guaalupe is a resien% o4 %+e -i%y o4 &anila in
%+e $our% 8+ere %+e a$%ion 8as 4ile is no% %+e proper $our% %o %a9e $o3niAan$e o4 %+e $ase.
Lower Court )ulin*/ .+e $our% is(isse %+e $o(plain% 8i%+ou% pronoun$e(en%s as %o $os%s.
4ppellate Court )ulin*, No% appli$able.
ISS<E,
1. :+e%+er %+e lo8er $our% erre in is(issin3 %+e $o(plain%.
)4-IA, -F1 a44ir(e. For purposes o4 4ilin3 $i)il a$%ions, %+e Rules o4 -our% pro)ie %+a% %+e plain%i44 $an ele$% %o 4ile %+e
a$%ion in $our% +e (ay $+oose i4 bo%+ %+e plain%i44 an e4enan% +a)e %+eir resien$e in %+e *+ilippines. #%+er8ise, %+e
a$%ion $an only be brou3+% in %+e pla$e 8ere ei%+er one resies. 1n %+e presen% $ase, $o(plainan%Qplain%i44 &a(ero is a
resien% o4 Las Ke3as, 6.'. 8+ile e4enan% Guaalupe is a resien% o4 -a%balo3an, 'a(ar. 'u$+ bein3 %+e $ase,
&a(ero +as no $+oi$e o%+er %+an %o 4ile %+e a$%ion in %+e $our% o4 4irs% ins%an$e o4 Guaalupe<s pro)in$e.
.+e alle3a%ion o4 &a(ero L4or purposes o4 4ilin3 an (ain%ainin3 %+is sui%, %e(porarily resies a% 'an%a &esa,
&anilaM $anno% ser)e as basis 4or %+e purpose o4 e%er(inin3 %+e )enue 4or %+a% is no% %+e resien$e $on%e(pla%e by %+e
rule. #%+er8ise, i% 8oul $rea%e a si%ua%ion 8+ere a person (ay +a)e +is resien$e in one pro)in$e an, %o sui% +is
$on)enien$e, or %o +arass %+e e4enan%, (ay brin3 %+e a$%ion in %+e $our% o4 any o%+er pro)in$e.
Resien$e, as use in sai rule, is synony(ous 8i%+ o(i$ile. .+is is e4ine as L%+e per(anen% +o(e, %+e pla$e
%o 8+i$+, 8+ene)er absen% 4or business or pleasure, one in%ens %o re%urn, an epens on 4a$%s an $ir$u(s%an$es, in
%+e sense %+a% %+ey is$lose in%en%.M
L4A IC8A9> E- 4L @ .4I%E 8E)9491EE
101 '(il 1155 (05F+1F55)
Doctrine: ) law distinguishing aliens from residents does not violate the equal protection clause of the &onstitution
because sufficient grounds e*ist for the distinction between alien and citi$en in the e*ercise of the occupation regulated. (t
also does not violate the due process of law clause, because the law is prospective in operation and recogni$es the
privilege of aliens already engaged in the occupation and reasonably protects their privilege.
C4C-S, Republi$ A$% No. 1180 >LAn A$% %o Re3ula%e %+e Re%ail =usinessM? 8as passe %o e44e$%i)ely na%ionaliAe %+e re%ail
%rae business. .+e (ain pro)isions o4 %+e A$% are/ >1? a pro+ibi%ion a3ains% persons, no% $i%iAens o4 %+e *+ilippines, an
a3ains% asso$ia%ions, par%ners+ips, or $orpora%ions %+e $api%al o4 8+i$+ are no% 8+olly o8ne by $i%iAens o4 %+e *+ilippines,
4ro( en3a3in3 ire$%ly or inire$%ly in %+e re%ail %raeG >2? an e0$ep%ion 4ro( %+e abo)e pro+ibi%ion in 4a)or o4 aliens a$%ually
en3a3e in sai business on &ay 15, 195", 8+o are allo8e %o $on%inue %o en3a3e %+erein, unless %+eir li$enses are
4or4ei%e in a$$oran$e 8i%+ %+e la8, un%il %+eir ea%+ or )olun%ary re%ire(en% in $ase o4 na%ural persons, an 4or %en years
a4%er %+e appro)al o4 %+e A$% or un%il %+e e0pira%ion o4 %er( in $ase o4 7urii$al personsG >3? an e0$ep%ion %+ere4ro( in 4a)or
o4 $i%iAens an 7urii$al en%i%ies o4 %+e 6ni%e '%a%esG >"? a pro)ision 4or %+e 4or4ei%ure o4 li$enses >%o en3a3e in %+e re%ail
business? 4or )iola%ion o4 %+e la8s on na%ionaliAa%ion, $on%rol 8ei3+%s an (easures an labor an o%+er la8s rela%in3 %o
%rae, $o((er$e an inus%ryG >5? a pro+ibi%ion a3ains% %+e es%ablis+(en% or openin3 by aliens a$%ually en3a3e in %+e
re%ail business o4 ai%ional s%ores or bran$+es o4 re%ail business, >6? a pro)ision re5uirin3 aliens a$%ually en3a3e in %+e
re%ail business %o presen% 4or re3is%ra%ion 8i%+ %+e proper au%+ori%ies a )eri4ie s%a%e(en% $on$ernin3 %+eir businesses,
3i)in3, a(on3 o%+er (a%%ers, %+e na%ure o4 %+e business, %+eir asse%s an liabili%ies an %+eir o44i$es an prin$ipal o44i$es o4
7ui$ial en%i%iesG an >7? a pro)ision allo8in3 %+e +eirs o4 aliens no8 en3a3e in %+e re%ail business 8+o ie, %o $on%inue
su$+ business 4or a perio o4 si0 (on%+s 4or purposes o4 li5uia%ion.
*e%i%ioner, 4or an in +is o8n be+al4 an on be+al4 o4 o%+er alien resien%s, $orpora%ions, an par%ners+ips
a)ersely a44e$%e by %+e pro)isions o4 R.A. No. 1180, brou3+% %+is a$%ion %o ob%ain a 7ui$ial e$lara%ion %+a% sai A$% is
un$ons%i%u%ional, an %o en7oin %+e 'e$re%ary o4 Finan$e an all o%+er persons a$%in3 uner +i(, par%i$ularly $i%y an
(uni$ipal %reasurers, 4ro( en4or$in3 i%s pro)isions. A(on3 o%+er %+in3s, pe%i%ioner $on%ens %+a% %+e A$% enies %o alien
resien%s %+e e5ual pro%e$%ion o4 %+e la8s an epri)es o4 %+eir liber%y an proper%y 8i%+ou% ue pro$ess o4 la8 an
)iola%es in%erna%ional an %rea%y obli3a%ions o4 %+e *+ilippines.
Lower Court )ulin*, No% appli$able.
4ppellate Court )ulin*, No% appli$able.
ISS<E,
1. :+e%+er or no% %+e la8 is un$ons%i%u%ional.
)4-IA, .+e la8 is $ons%i%u%ional.
1. ?qual Protection &lause: .+e (ain poin% 4or e%er(ina%ion is 8+e%+er aliena3e is %+e roo% an $ause o4 %+e
is%in$%ion be%8een %+e alien an %+e na%ional as a %raer. .+e alien resien% o8es alle3ian$e %o %+e $oun%ry o4 +is bir%+ or
+is aop%e $oun%ryG +is s%ay +ere is 4or personal $on)enien$eG +e is a%%ra$%e by %+e lure o4 3ain an pro4i%. :+ile +is ai(
or purpose is nei%+er ille3i%i(a%e nor i((oral, +e na%urally la$9s %+e spiri% o4 loyal%y an en%+usias( 4or %+is $oun%ry 8+ere
+e %e(porarily s%ays an (a9es +is li)in3, or o4 spiri% o4 re3ar, sy(pa%+y, an $onsiera%ion 4or +is Filipino $us%o(ers as
8oul pre)en% +i( 4ro( %a9in3 a)an%a3e o4 %+eir 8ea9ness an e0ploi%in3 %+e(. Ano%+er ob7e$%ion %o %+e alien re%ailer in
%+is $oun%ry is %+a% +e ne)er really (a9es a 3enuine $on%ribu%ion %o na%ional in$o(e an 8eal%+ sin$e %+e 3ains an pro4i%s
+e (a9es are no% in)es%e in inus%ries %+a% 8oul +elp %+e $oun%ry<s e$ono(y an in$rease na%ional 8eal%+.
.+e abo)e ob7e$%ionable $+ara$%eris%i$s o4 %+e e0er$ise o4 %+e re%ail %rae by %+e aliens, 8+i$+ are a$%ual an real,
4urnis+ su44i$ien% 3rouns 4or le3isla%i)e $lassi4i$a%ion o4 re%ail %raers in%o na%ionals an aliens. 'o(e (ay isa3ree 8i%+
%+e 8iso( o4 %+e le3isla%ureEs $lassi4i$a%ion. .o %+is 8e ans8er, %+a% %+is is %+e prero3a%i)e o4 %+e la8-(a9in3 po8er.
'in$e %+e -our% 4ins %+a% %+e $lassi4i$a%ion is a$%ual, real an reasonable, an all persons o4 one $lass are %rea%e ali9e,
an as i% $anno% be sai %+a% %+e $lassi4i$a%ion is pa%en%ly unreasonable an un4oune, i% is in u%y boun %o e$lare %+a%
%+e le3isla%ure a$%e 8i%+in i%s le3i%i(a%e prero3a%i)e an i% $anno% e$lare %+a% %+e a$% %rans$ens %+e li(i% o4 e5ual
pro%e$%ion es%ablis+e by %+e -ons%i%u%ion.
2. Due Process: *e%i%ioner<s (ain ar3u(en% is %+a% re%ail is a $o((on, orinary o$$upa%ion, one o4 %+ose pri)ile3es
lon3 a3o re$o3niAe as essen%ial %o %+e orerly pursuan% o4 +appiness by 4ree (enG %+a% i% is a 3ain4ul an +ones%
o$$upa%ion an %+ere4ore beyon %+e po8er o4 %+e le3isla%ure %o pro+ibi% an penaliAe. Bo8e)er, %+e real 5ues%ion a%
issue is L8+e%+er %+e e0$lusion in %+e 4u%ure o4 aliens 4ro( %+e re%ail %rae unreasonable, arbi%rary, an $apri$ious %a9in3
in%o a$$oun% %+e ille3i%i(a%e an perni$ious 4or( an (anner in 8+i$+ %+e aliens +a)e +ere%o4ore en3a3e %+ereinJ As
%+us $orre$%ly s%a%e %+e ans8er is $lear. .+e la8 in 5ues%ion is ee(e absolu%ely ne$essary %o brin3 abou% %+e esire
le3isla%i)e ob7e$%i)e, i.e., %o 4ree na%ional e$ono(y 4ro( alien $on%rol an o(inan$e. 1% is no% ne$essarily unreasonable
be$ause i% a44e$%s pri)a%e ri3+%s an pri)ile3es. .+e %es% o4 reasonableness o4 a la8 is %+e appropria%eness or ae5ua$y
uner all $ir$u(s%an$es o4 %+e (eans aop%e %o $arry ou% i%s purpose in%o e44e$%. !u3e by %+is %es%, %+e ispu%e
le3isla%ion, 8+i$+ is no% (erely reasonable bu% a$%ually ne$essary, (us% be $onsiere no% %o +a)e in4rin3e %+e
$ons%i%u%ional li(i%a%ion o4 reasonableness.
3. )lleged violation of international treaties and obligations/ Ano%+er suborina%e ar3u(en% a3ains% %+e )alii%y o4 %+e
la8 is %+e suppose )iola%ion %+ereby o4 %+e -+ar%er o4 %+e 6ni%e Na%ions an o4 %+e ,e$lara%ion o4 %+e Bu(an Ri3+%s
aop%e by %+e 6ni%e Na%ions General Asse(bly. :e 4in no (eri% in %+e Na%ions -+ar%er i(poses no s%ri$% or le3al
obli3a%ions re3arin3 %+e ri3+%s an 4reeo( o4 %+eir sub7e$%s, an %+e ,e$lara%ion o4 Bu(an Ri3+%s $on%ains no%+in3 (ore
%+an a (ere re$o((ena%ion or a $o((on s%anar o4 a$+ie)e(en% 4or all peoples an all na%ions. .+a% su$+ is %+e
i(por% o4 %+e 6ni%e Na%ions -+ar%er ai o4 %+e ,e$lara%ion o4 Bu(an Ri3+%s $an be in4erre %+e 4a$% %+a% (e(bers o4 %+e
6ni%e Na%ions #r3aniAa%ions, su$+ as Nor8ay an ,en(ar9, pro+ibi% 4orei3ners 4ro( en3a3in3 in re%ail %rae, an in (os%
na%ions o4 %+e 8orl la8s a3ains% 4orei3ners en3a3e in o(es%i$ %rae are aop%e.
.+e .rea%y o4 A(i%y be%8een %+e Republi$ o4 %+e *+ilippines an %+e Republi$ o4 -+ina o4 April 18, 19"7 is also
$lai(e %o be )iola%e by %+e la8 in 5ues%ion. All %+a% %+e %rea%y 3uaran%ees is e5uali%y o4 %rea%(en% %o %+e -+inese
na%ionals @upon %+e sa(e %er(s as %+e na%ionals o4 any o%+er $oun%ry.@ =u% %+e na%ionals o4 -+ina are no% is$ri(ina%in3
a3ains% be$ause na%ionals o4 all o%+er $oun%ries, e0$ep% %+ose o4 %+e 6ni%e '%a%es, 8+o are 3ran%e spe$ial ri3+%s by %+e
-ons%i%u%ion, are all pro+ibi%e 4ro( en3a3in3 in %+e re%ail %rae. =u% e)en supposin3 %+a% %+e la8 in4rin3es upon %+e sai
%rea%y, %+e %rea%y is al8ays sub7e$% %o 5uali4i$a%ion or a(en(en% by a subse5uen% la8, an %+e sa(e (ay ne)er $ur%ail or
res%ri$% %+e s$ope o4 %+e poli$e po8er o4 %+e '%a%e.
E4S-#A4)1 94@I>4-IA9 @ .<49 ;S%4EL CA! I9C
9o L-9090 Septem$er 1! 1955
Doctrine/ The law of the forum governs procedural matters 9such as notice requirements:. The law of the state where a
foreign +udgment is sought to be enforced cannot be invo0ed to impugn the validity of the proceedings where the foreign
+udgment was made.
C4C-S, !uan ;s(ael -o., 1n$ >e4enan%?, %+rou3+ D. B. Be(ay >i%s presien% an 3eneral (ana3er?, $+ar%ere
2as%boar Na)i3a%ion<s >plain%i44? )essel %o loa a $ar3o o4 s$rap iron in %+e *+ilippines 4or =uenos Aires. .+e $+ar%er par%y
a3ree(en% $on%aine, besies %+e re3ular $+ar%er par%y prin%e 4or(, a %ype8ri%%en $lause pro)iin3 4or $o(pulsory
arbi%ra%ion in %+e s%a%e o4 Ne8 ;or9, 6.'. in $ase o4 any ispu%es %+a% (ay arise o4 sai a3ree(en%. !uan ;s(ael, %+rou3+
D.B. Be(ay, si3ne no% only %+e prin%e por%ion o4 %+e $+ar%er par%y bu% %+e %ype8ri%%en por%ion. 1% appears %+a% a4%er %+e
ispu%e as %o %+e liabili%y o4 !uan ;s(ael >4or %+e pay(en% 4rei3+% an e(urra3e? arose, D.B. Be(ay appoin%e Ne8
;or9 A%%ys. &annin3, Barnis$+, an Bollin3er %o represen% !uan ;s(ael in %+e arbi%ra%ion pro$eein3s %o be +el in Ne8
;or9. #n &ay 23, 1959, &essrs. &annin3, Barnis$+, an Bollin3er, a$%in3 as a%%orneys 4or !uan ;s(ael e0e$u%e 8i%+ %+e
a%%orney 4or 2as%boar Na)i3a%ion an arbi%ra%ion a3ree(en%. .+e arbi%ra%ion a3ree(en% 8as presen%e by 2as%boar
Na)i3a%ion %o %+e 6.'. ,is%ri$% -our%, 'ou%+ern ,is%ri$%, 'ou%+ern ,is%ri$% o4 Ne8 ;or9, 4or $on4ir(a%ion an sai -our%
>a$%in3 as an a(iral%y $our%? $on4ir(e %+e sai arbi%ra%ion e$ision in i%s #rer an Final ,e$ree o4 Au3us% 15, 1950
>L#rer an Final ,e$reeM?.
2as%boar Na)i3a%ion brou3+% %+is a$%ion %o en4or$e %+e a4oresai L#rer an Final ,e$reeM pursuan% %o 'e$%ion
"8, Rule 39 o4 %+e Rules o4 -our% 8+i$+ pro)ies %+a% Lin $ase o4 a 7u3(en% a3ains% a person, %+e 7u3(en% 1s
presu(p%i)e e)ien$e o4 a ri3+% as be%8een %+e par%ies an %+eir su$$essors in in%eres% by a subse5uen% %i%leG bu% %+e
7u3(en% (ay be repelle by e)ien$e o4 a 8an% o4 7urisi$%ion, 8an% o4 no%i$e %o %+e par%y, $ollusion, 4rau, or $lear
(is%a9e o4 la8 or 4a$%.M !uan ;s(ael se%s up %+e e4ense %+a% %+e 7u3(en% $anno% be en4or$e in %+e *+ilippines be$ause
8+en %+e Ne8 ;or9 ,is%ri$% -our% a$%e on %+e $ase, i% i no% +a)e 7urisi$%ion o)er %+e person o4 %+e e4enan%.
Lower Court )ulin*, ,e$ision o4 %+e Ne8 ;or9 ,is%ri$% -our% a44ir(e an %+a% %+e L#rer an Final ,e$reeM s+oul be
en4or$e.
4ppellate Court )ulin*, No% appli$able.
ISS<E,
1. :+e%+er or no% %+e lo8er $our% erre in en4or$in3 %+e L#rer an Final ,e$reeM issue by %+e Ne8 ;or9 ,is%ri$%
-our%.
)4-IA, -F1 a44ir(e.
1. As %o 8+e%+er !uan ;s(ael a3ree %o sub(i% %o $o(pulsory arbi%ra%ion i%s ispu%e 8i%+ 2as%boar Na)i3a%ion in
%+e $+ar%er par%y a3ree(en% e0e$u%e be%8een %+e(, %+e -our% +el %+a% i% in%ene %o sub(i% i%s ispu%e 8i%+ 2as%boar
Na)i3a%ion %o arbi%ra%ion. #%+er8ise, %+e lo3i$al s%ep %+a% !uan ;s(ael s+oul +a)e %a9en 8oul be %o repuia%e %+e a$% o4
i%s presien% an 3eneral (ana3er. Far 4ro( oin3 so, !uan ;s(ael ra%i4ie i% by subse5uen% a$%s 8+i$+ $learly ini$a%e
%+a% i% 8as a3reeable %o sai arbi%ra%ion. -onse5uen%ly, sai arbi%ra%ion pro$eein3s as 8ell as %+e arbi%ra%ion e$ision
renere pursuan% %+ereo4, as $on4ir(e by %+e ,is%ri$% -our% o4 Ne8 ;or9, are )aliG +en$e, en4or$eable in %+is
7urisi$%ion.
2. As %o 8+e%+er %+e e$ision renere by %+e 6.'. ,is%ri$% $our% o4 Ne8 ;or9 si%%in3 as an A(iral%y -our%, 8+i$+
ra%i4ie %+e a8ar (ae by %+e arbi%ra%ors, +as no binin3 e44e$% on e4enan% $orpora%ion or 8+e%+er i% $an be en4or$e in
%+is 7urisi$%ion as %+e 6.'. ,is%ri$% $our% i no% a$5uire 7urisi$%ion o)er !uan ;s(ael, %+e -our% +el %+a% su$+ $on%en%ion
8as un(eri%orious. .+e $lai( is prei$a%e on %+e alle3e 4a$% %+a% e4enan% 8as ne)er ser)e 8i%+ no%i$e, su((ons, or
pro$ess rela%i)e %o %+e sub(ission o4 %+e a8ar o4 %+e arbi%ra%ors %o sai $our%, in)o9in3 6.'. Arbi%ra%ion A$% o4 February
12, 1925 uner 8+i$+ %+e Ne8 ;or9 ,is%ri$% $our% $on4ir(e %+e arbi%ra%or<s a8ar. .+e la8 in)o9e, +o8e)er, oes no%
sus%ain e4enan%<s pre%ense sin$e %+e Arbi%ra%ion A$% oes no% ne$essarily re5uire %+a% ser)i$e o4 no%i$e o4 %+e appli$a%ion
4or $on4ir(a%ion be (ae on %+e a)erse par%y +i(sel4 >in $ase o4 a non-resien%?, i% bein3 su44i$ien% %+a% i% be (ae upon
+is a%%orney. 1n %+is $ase, a $opy o4 no%i$e o4 sub(ission o4 %+e a8ar %o %+e ,is%ri$% -our% o4 Ne8 ;or9 8as ser)e upon
e4enan%<s $ounsel 8+o in ue %i(e (ae o4 re$or %+eir appearan$e an a$%ually appeare 8+en %+e $ase 8as +ear. 1%
is also si3ni4i$an% %+a% e4enan%<s $ounsel ne)er i(pu3ne %+e 7urisi$%ion o4 %+e $our% o)er e4enan% nor i %+ey e)er
plea be4ore i% %+a% %+ey 8ere bere4% o4 au%+ori%y %o represen% e4enan%. ,e4enan% $anno% %+ere4ore in %+is is%an$e e4ea%
%+e e44e$% o4 %+is e$ision by alle3in3 8an% o4 7urisi$%ion, or 8an% o4 no%i$e, as pro)ie 4or in 'e$. "8, Rule 39 o4 %+e
*+ilippine Rules o4 -our%.
L; >IA2 84 E- 4L @ >4L49>
>) 9o L-10560 (5F15F55)
Doctrine/ )ny foreigner who posted a bond to ma0e his%her entry feasible in the country and thereafter be married to a
citi$en of the Philippines will be entitled to the return of the said bond.
C4C-S, *e%i%ioner Ly Gio9 Ba, alias :y Gio9 Ba, en%ere %+e *+ilippines as a $i%iAen o4 %+e Na%ionalis% Republi$ o4 -+ina
an a %e(porary )isi%or, e0%ene up %o &ar$+ 1", 1956. 1n orer %o (a9e sai en%ry 4easible, +er sis%er an $o-pe%i%ioner
:y Bon3 2n3, +a, on &ar$+ 28, 1955, (ae 8i%+ %+e =ureau o4 1((i3ra%ion, a $as+ eposi% o4 *10,000. Ly Gio9 Ba,
alias :y Gio9 Ba, (arrie Res%i%u%o La$as%a, a Filipino. .+is no%8i%+s%anin3, on &ar$+ 16, 1956, responen% 2(ilio L.
Galan3, as -o((issioner o4 1((i3ra%ion e$lare sai $as+ eposi% 4or4ei%e. Ly Gio9 Ba, +er +usban Res%i%u%o
La$as%a, %+e 4or(erEs sis%er, :y Bon3 2n3, an %+e la%%erEs +usban, N3o 1n, ins%i%u%e %+e presen% a$%ion a3ains% 2(ilio L.
Galan3.
Lower Court )ulin*, .+e -our% o4 Firs% 1ns%an$e o4 &anila renere 7u3(en% 4or %+e pe%i%ioners.
4ppellate Court )ulin*, NQA
ISS<E,
1. :+e%+er or no% +er (arria3e %o a Filipino 7us%i4ie or e0$use %+e 4ailure o4 Ly Gio9 Ba %o epar% 4ro( %+e
*+ilippines an %+us %+e 4or4ei%ure o4 %+e $as+ bon pos%e 8as a )iola%ion o4 +er ri3+%. C ;es
)4-IA, #n %+is issue o4 )iola%in3 +er bon 8+i$+ s%a%es, L%+e unersi3ne, 8i%+ 4ull 9no8le3e %+a% Ly Gio9 Ba, a
%e(porary )isi%or 8+ose au%+oriAe s%ay in %+is $oun%ry is li(i%e only up %o an in$luin3 Au3us% 1", 1955, o +ereby
uner%a9e %+a% sai Ly Gio9 Ba 8ill a$%ually epar% 4ro( %+e *+ilippines on or be4ore sai a%e so spe$i4ie, or 8i%+in su$+
perio as in +is is$re%ion %+e -o((issioner o4 i((i3ra%ion or +is au%+oriAe represen%a%i)e (ay properly allo8,M as9in3
4or an e0%ension i no% )iola%e %+e bon on 4our reasons/ >a? -o(pe%en% au%+ori%ies 3ran%e sai re5ues%sG >b? %+e bon
$learly ini$a%es %+a% %+e -o((issioner o4 1((i3ra%ion, or +is au%+oriAe represen%a%i)e, (ay properly allo8 an e0%ensionG
>$? .+e re5ues%s 4or e0%ension in)ol)e in %+e $ase a% bar o no%, in any (anner 8+a%e)er, run $oun%er %o any o4 %+e
purposes sou3+% %o be ser)e by %+e bon in 5ues%ionG >? Responen% Galan3 i no% re3ar sai re5ues%s 4or e0%ension
as a brea$+ o4 sai uner%a9in3.
#n %+e issue o4 8+e%+er +er (arria3e %o a Filipino 7us%i4ie or, a% leas%, e0$use %+e a4oresai 4ailure o4 Ly Gio9 Ba
%o epar% 4ro( %+e *+ilippines on or be4ore &ar$+ 1", 1956, .+e per%inen% par% o4 se$%ion 15 o4 -o((on8eal%+ A$% No.
"73, upon 8+i$+ pe%i%ioners rely, reas, LAny 8o(an 8+o is no8 or (ay +erea4%er be (arrie %o a $i%iAen o4 %+e
*+ilippines, an 8+o (i3+% +ersel4 be la84ully na%uraliAe s+all be ee(e a $i%iAen o4 %+e *+ilippines.M =y reason o4 su$+
na%uraliAa%ion %+rou3+ (arria3e, se$%ion "0 >c? o4 -o((on8eal%+ A$% No. 613 pro)ies %+a% @in %+e e)en% o4 %+e
na%uraliAa%ion as a *+ilippine $i%iAen . . . o4 %+e alien on 8+ose be+al4 %+e bon eposi% is 3i)en, the bond shall be
cancelled or the sum deposited shall be returned %o %+e eposi%or or +is le3al represen%a%i)e.M
-onsierin3, +o8e)er, %+a% nei%+er in %+e a(inis%ra%i)e pro$eein3s, nor in %+e lo8er $our%, +a %+e par%ies
see(in3ly 4el% %+a% %+ere 8as an issue on 8+e%+er Ly Gio9 Ba (ay @be la84ully na%uraliAe,@ an %+is bein3 a $ase o4 4irs%
i(pression in our $our%s, .+e '- is o4 %+e opinion %+a%, in %+e in%eres% o4 e5ui%y an 7us%i$e, %+e par%ies s+oul be 3i)en an
oppor%uni%y %o in%rou$e e)ien$e, i4 %+ey +a)e any, on sai issue. .+e e$ision appeale 4ro( is +ereby se% asie an le%
%+e re$ors o4 %+is $ase be re(ane %o %+e lo8er $our% 4or 4ur%+er pro$eein3s
4%E)IC49 #I#LE SACIE-; @ CI-; AC %49IL4
>) 9o L-96+5 4pril +0! 1955
Doctrine/ &orporations or associations organi$ed and operated e*clusively for religious, charitable, or educational
purposes, are e*empt from corporate income ta*es.
C4C-S, *lain%i44-appellan% is a 4orei3n, non-s%o$9, non-pro4i%, reli3ious, (issionary $orpora%ion uly re3is%ere an oin3
business in %+e *+ilippines %+rou3+ i%s *+ilippine a3en$y es%ablis+e in &anila. .+e e4enan% appellee is a (uni$ipal
$orpora%ion 8i%+ po8ers %+a% are %o be e0er$ise in $on4or(i%y 8i%+ %+e pro)isions o4 Republi$ A$% No. "09, 9no8n as %+e
Re)ise -+ar%er o4 %+e -i%y o4 &anila.
1n %+e $ourse o4 i%s (inis%ry, plain%i44Es *+ilippine a3en$y +as been is%ribu%in3 an sellin3 bibles anQor 3ospel
por%ions %+rou3+ou% %+e *+ilippines. #n &ay 29 1953, %+e a$%in3 -i%y .reasurer o4 %+e -i%y o4 &anila in4or(e plain%i44 %+a%
i% 8as $onu$%in3 %+e business o4 3eneral (er$+anise sin$e 19"5, 8i%+ou% pro)iin3 i%sel4 8i%+ %+e ne$essary &ayorEs
per(i% an (uni$ipal li$ense, in )iola%ion o4 #rinan$e No. 3000, as a(ene, an #rinan$es Nos. 2529, 3028 an
336", an re5uire plain%i44 %o se$ure, 8i%+in %+ree ays, %+e $orresponin3 per(i% an li$ense 4ees, in %+e %o%al su( o4
*5,821."5.
*lain%i44 pai %o %+e e4enan% uner pro%es% %+e sai per(i% an li$ense 4ees in %+e a4ore(en%ione a(oun%, 3i)in3
a% %+e sa(e %i(e no%i$e %o %+e -i%y .reasurer %+a% sui% 8oul be %a9en in $our% %o 5ues%ion %+e le3ali%y o4 %+e orinan$es
uner 8+i$+, %+e sai 4ees 8ere bein3 $olle$%e. :i%+ re3ar %o #rinan$e No. 2529, as a(ene by #rinan$es Nos.
2779, 2821 an 3028, appellan% $on%ens %+a% i% is un$ons%i%u%ional an ille3al be$ause i% res%rains %+e 4ree e0er$ise an
en7oy(en% o4 %+e reli3ious pro4ession an 8ors+ip o4 appellan%.
Lower Court )ulin*, For %+e purpose o4 %a0in3 %+e (er$+anise (en%ione in sai le3al pro)isions an %+a% %+e %a0es %o
be le)ie by sai orinan$es is in %+e na%ure o4 per$en%a3e 3raua%e %a0es, %+e R.- +el %+a% %+e $ase be is(isse 4or
la$9 o4 (eri%.
4ppellate Court )ulin*, Keri4ie %+e $ase %o %+e '- 4or %+e reason %+a% %+e errors assi3ne %o %+e lo8er -our% in)ol)e
only 5ues%ions o4 la8.
ISS<E,
1. :+e%+er or no% %+e sale an is%ribu%ion o4 bibles by %+e appellan% is %a0able. - No
)4-IA, 1% (ay be %rue %+a% in %+e $ase a% bar %+e pri$e as9e 4or %+e bibles an o%+er reli3ious pa(p+le%s 8as in so(e
ins%an$es a li%%le bi% +i3+er %+an %+e a$%ual $os% o4 %+e sa(e bu% %+is $anno% (ean %+a% appellan% 8as en3a3e in %+e
business or o$$upa%ion o4 sellin3 sai @(er$+anise@ 4or pro4i%. For %+is reason %+e -our% belie)e %+a% %+e pro)isions o4 -i%y
o4 &anila #rinan$e No. 2529, as a(ene, $anno% be applie %o appellan%, 4or in oin3 so i% 8oul i(pair i%s 4ree
e0er$ise an en7oy(en% o4 i%s reli3ious pro4ession an 8ors+ip as 8ell as i%s ri3+%s o4 isse(ina%ion o4 reli3ious belie4s.
:i%+ respe$% %o #rinan$e No. 3000, as a(ene, 8+i$+ re5uires %+e ob%en%ion %+e &ayorEs per(i% be4ore any
person $an en3a3e in any o4 %+e businesses, %raes or o$$upa%ions enu(era%e %+erein, i% oes no% 4in %+a% i% i(poses
any $+ar3e upon %+e en7oy(en% o4 a ri3+% 3ran%e by %+e -ons%i%u%ion, nor %a0 %+e e0er$ise o4 reli3ious pra$%i$es.
.+e -our% %+us re)erse %+e e$ision appeale 4ro(, sen%en$in3 e4enan% re%urn %o plain%i44 %+e su( o4 *5,891."5
unuly $olle$%e 4ro( i%.
CL4<1I94 @14 1E @ILL4)<EL @ %49IL4
>) 9o L-10+90 1ecem$er 1+! 1957
Doctrine/ @anila @otor &o. should not be held liable for the rentals of the premises leased corresponding to the lapse of
time that they were occupied as quarters or barrac0s by the invading #apanese army.
C4C-S, .+e plain%i44 -lauina Killaruel an %+e e4enan% &anila &o%or -o., 1n$. en%ere in%o a $on%ra$% >20+ibi% @A@?
8+ereby, %+e 4or(er a3ree %o $on)ey by 8ay o4 lease %o %+e la%%er %+e proper%y. .+e %er( o4 %+e lease 8as 4i)e >5? years,
rene8able 4or an ai%ional perio o4 4i)e >5? years. .+e lease pre(ises 8ere pla$e in %+e possession o4 %+e lessee on
%+e 31s% ay o4 #$%ober, 19"0.
.+e &anila &o%or -o., 1n$. an i%s bran$+ (ana3er en7oyin3 %+e pre(ises, an %+e lessors re$ei)in3 %+e
$orresponin3 ren%als as s%ipula%e, $on%inue un%il %+e in)asion o4 19"1G %+e ene(y 4or$es +el an use %+e proper%ies
lease as par% o4 %+eir 5uar%ers 4ro( !une 1, 19"2 %o &ar$+ 29, 19"5, ous%in3 %+e lessee %+ere4ro(. No pay(en% o4 ren%als
8ere (ae a% any %i(e urin3 %+e sai perio. 6pon %+e libera%ion o4 %+e sai $i%y in 19"5, %+e A(eri$an For$es o$$upie
%+e sa(e builin3s %+a% 8ere )a$a%e by %+e !apanese, un%il #$%ober 31, 19"5. &on%+ly ren%als 8ere pai by %+e sai
o$$upan%s. :+en %+e 6ni%e '%a%es Ar(y 4inally 3a)e up %+e o$$upan$y %+e pre(ises, %+e &anila &o%or -o., 1n$., e$ie
%o e0er$ise %+eir op%ion %o rene8 %+e $on%ra$% 4or %+e ai%ional perio o4 4i)e >5? years. 'i(ul%aneously 8i%+ su$+ rene8al,
%+e $o(pany suble% %+e sa(e builin3s, e0$ep% %+a% use 4or %+e resien$e o4 %+e bran$+ (ana3er, %o %+e o%+er e4enan%,
Ar%uro -ol(enares. Bo8e)er, be4ore resu(in3 %+e $olle$%ion o4 ren%als, ,r. Al4reo Killaruel, $onsul%e A%%y. Luis Bilao
on 8+e%+er %+ey +a %+e ri3+% %o $olle$%, 4ro( %+e e4enan% $o(pany, ren%als $orresponin3 %o %+e %i(e urin3 8+i$+ %+e
!apanese (ili%ary 4or$es +a $on%rol o)er %+e lease pre(ises. 6pon bein3 a)ise %+a% %+ey +a su$+ a ri3+%, ,r.
Killaruel e(ane pay(en% %+ereo4, bu% %+e e4enan% $o(pany re4use %o pay. As a resul%, ,r. Killaruel 3a)e no%i$e
see9in3 %+e res$ission o4 %+e $on%ra$% o4 lease an %+e pay(en% o4 ren%als. .+e lessors $o((en$e %+is a$%ion on April 26,
19"7 8i%+ %+e -our% o4 Firs% 1ns%an$e o4 Ne3ros #$$ien%al a3ains% %+e appellan%s +erein.
,urin3 %+e penen$y o4 %+e $ase, a 4ire ori3ina%in3 4ro( %+e pro7e$%ion roo( o4 %+e -i%y .+ea%re, in%o 8+i$+ Ar%uro
-ol(enares, +a $on)er%e %+e 4or(er repair s+op o4 %+e &anila &o%or -o. 1n$., $o(ple%ely raAe %+e builin3. *lain%i44s
e(ane rei(burse(en% bu% %+e e4enan%s re4use.
Lower Court )ulin*, .+e $ase 8as a$$orin3ly +ear an %+erea4%er, 7u3(en% 8as renere in plain%i44sE 4a)or.
4ppellate Court )ulin*, NQA
ISS<E,
1. :+e%+er or no% &anila &o%or -o. s+oul be +el liable 4or %+e ren%als o4 %+e pre(ises lease $orresponin3 %o %+e
lapse o4 %i(e %+a% %+ey 8ere o$$upie as 5uar%ers or barra$9s by %+e in)ain3 !apanese ar(y. - No
)4-IA, #n %+e issue o4 %+e a(en(en% in %+e $o(plain% 4ro( %+e non-pay(en% o4 %+e ren%als urin3 %+e !apanese
o$$upa%ion, %o %+e non-pay(en% o4 %+e burne proper%y, %+is $anno% be $onsiere as alreay al%erin3 %+e %+eory o4 %+e
$ase 8+i$+ is (erely a $+an3e in %+e relie4 praye 4or, brou3+% abou% by $ir$u(s%an$es o$$urrin3 urin3 %+e penen$y o4
%+e a$%ion, an is no% i(proper. 'e$%ion 2, Rule 17 o4 %+e Rules o4 -our% s%a%es, @%o %+e en %+a% %+e real (a%%er in ispu%e
an all (a%%ers in %+e a$%ion in ispu%e be%8een %+e par%ies (ay, as 4ar as possible be $o(ple%ely e%er(ine in a sin3le
pro$eein3@.
#n %+e issue o4 %+e non-pay(en% urin3 %+e !apanese o$$upa%ion, %+e 4irs% para3rap+ o4 ar%i$le 1560, %+e lessor
oes no% ans8er 4or a (ere a$% o4 %respass >perturbacion de mero hecho? as is%in3uis+e 4ro( %respass uner $olor o4
%i%le > perturbacion de derecho?. 6pon %+e basis o4 %+e is%in$%ion %+us es%ablis+e be%8een %+e perturbacion de hecho an
%+e perturbacion de derecho, i% is e(ons%rable %+a% %+e ous%er o4 %+e appellan% by %+e !apanese o$$upyin3 4or$es belon3s
%o %+e se$on $lass o4 is%urban$es, de derecho. For uner %+e 3enerally a$$ep%e prin$iples o4 in%erna%ional la8, a
belli3eren% o$$upan% (ay le3i%i(a%ely bille% or 5uar%er i%s %roops in pri)a%ely o8ne lan an builin3s 4or %+e ura%ion o4 i%s
(ili%ary opera%ions, or as (ili%ary ne$essi%y s+oul e(an. :e are %+us 4or$e %o $on$lue %+a% in e)i$%in3 %+e lessee,
&anila &o%or -o., 1n$. 4ro( %+e lease builin3s an o$$upyin3 %+e sa(e as 5uar%ers 4or %roops, %+e !apanese au%+ori%ies
a$%e pursuan% %o a ri3+% re$o3niAe by in%erna%ional an o(es%i$ la8. 1%s a$% o4 ispossession, %+ere4ore, i no%
$ons%i%u%e perturbacion de hecho bu% a perturbacion de derecho 4or 8+i$+ %+e lessors Killaruel 8ere liable an 4or %+e
$onse5uen$es o4 8+i$+ sai lessors (us% respon, sin$e %+e resul% o4 %+e is%urban$e 8as %+e epri)a%ion o4 %+e lessee o4
%+e pea$e4ul use an en7oy(en% o4 %+e proper%y lease. :+ere4ore, %+e la%%erEs $orresponin3 obli3a%ion %o pay ren%als
$ease urin3 su$+ epri)a%ion. -onse5uen%ly, i% 8as re)ersible error %o sen%en$e %+e appellan%s %o pay *2,165 a (on%+
as reasonable )alue o4 %+e o$$upa%ion o4 %+e pre(ises 4ro( !uly 19"6, an %+e )alue o4 %+e es%roye builin3s a(oun%in3
%o *30,000.
)A%49 C4-8ALIC 4'AS-ALIC 41%I9IS-)4-A) AC 14@4A @ -8E L491 )E>IS-)4-IA9
>) 9o L-7051 1ecem$er &0! 1955
Doctrine/ ) corporation sole, irrespective of the citi$enship of its incumbent, is not prohibited or disqualified to acquire and
hold real properties in the Philippines.
C4C-S,&a%eo L. Rois, a Filipino $i%iAen an resien% o4 %+e -i%y o4 ,a)ao, e0e$u%e a ee o4 sale o4 a par$el o4 lan
lo$a%e in %+e sa(e $i%y, in 4a)or o4 %+e Ro(an -a%+oli$ Apos%oli$ A(inis%ra%or o4 ,a)ao 1n$., $orpora%ion sole or3aniAe
an e0is%in3 in a$$oran$e 8i%+ *+ilippine La8s, 8i%+ &s3r. -lo)is .+ibaul%, a -anaian $i%iAen, as a$%ual in$u(ben%.
:+en %+e ee o4 sale 8as presen%e %o Re3is%er o4 ,ees o4 ,a)ao 4or re3is%ra%ion, %+e la%%er re5uire sai $orpora%ion
sole %o sub(i% an a44ia)i% e$larin3 %+a% 60 per $en% o4 %+e (e(bers %+ereo4 8ere Filipino $i%iAens.
As %+e Re3is%er o4 ,ees en%er%aine so(e oub%s as %o %+e re3is%erabili%y o4 %+e o$u(en%, %+e (a%%er 8as
re4erre %o %+e Lan Re3is%ra%ion -o((issioner en consulta 4or resolu%ion. *roper +earin3 on %+e (a%%er 8as $onu$%e
by %+e -o((issioner an a4%er %+e pe%i%ioner $orpora%ion +a 4ile i%s (e(oranu(, a resolu%ion 8as renere, +olin3
%+a% in )ie8 o4 %+e pro)isions o4 'e$%ion 1 an 5 o4 Ar%i$le R111 o4 %+e *+ilippine -ons%i%u%ion, %+e )enee 8as no% 5uali4ie
%o a$5uire pri)a%e lans in %+e *+ilippines in %+e absen$e o4 proo4 %+a% a% leas% 60 per $en%u( o4 %+e $api%al, proper%y, or
asse%s o4 %+e Ro(an -a%+oli$ Apos%oli$ A(inis%ra%or o4 ,a)ao, 1n$., 8as a$%ually o8ne or $on%rolle by Filipino $i%iAens,
%+ere bein3 no 5ues%ion %+a% %+e presen% in$u(ben% o4 %+e $orpora%ion sole 8as a -anaian $i%iAen. 1% 8as also %+e opinion
o4 %+e Lan Re3is%ra%ion -o((issioner %+a% se$%ion 159 o4 %+e $orpora%ion La8 relie upon by %+e )enee 8as renere
opera%i)e by %+e a4ore(en%ione pro)isions o4 %+e -ons%i%u%ion 8i%+ respe$% %o real es%a%e, unless %+e pre$ise $oni%ion se%
%+erein F %+a% a% leas% 60 per $en% o4 i%s $api%al is o8ne by Filipino $i%iAens F be presen%, an, %+ere4ore, orere %+e
Re3is%ere ,ees o4 ,a)ao %o eny re3is%ra%ion o4 %+e ee o4 sale in %+e absen$e o4 proo4 o4 $o(plian$e 8i%+ su$+
$oni%ion.
Land )e*istration Commissioner )ulin*, .+e )enee 8as no% 5uali4ie %o a$5uire pri)a%e lans in %+e *+ilippines in %+e
absen$e o4 proo4 %+a% a% leas% 60 per $en%u( o4 %+e $api%al, proper%y, or asse%s o4 %+e Ro(an -a%+oli$ Apos%oli$
A(inis%ra%or o4 ,a)ao, 1n$., 8as a$%ually o8ne or $on%rolle by Filipino $i%iAens.
ISS<E,
1. :+e%+er or no% a $orpora%ion sole, irrespe$%i)e o4 %+e $i%iAens+ip o4 i%s in$u(ben%, is no% pro+ibi%e or is5uali4ie
%o a$5uire an +ol real proper%ies. C ;es
)4-IA, Al%+ou3+ a bran$+ o4 %+e 6ni)ersal Ro(an -a%+oli$ Apos%oli$ -+ur$+, e)ery Ro(an -a%+oli$ -+ur$+ in i44eren%
$oun%ries, i4 i% e0er$ises i%s (ission an is la84ully in$orpora%e in a$$oran$e 8i%+ %+e la8s o4 %+e $oun%ry 8+ere i% is
lo$a%e, is $onsiere an en%i%y or person 8i%+ all %+e ri3+%s an pri)ile3es 3ran%e %o su$+ ar%i4i$ial bein3 uner %+e la8s o4
%+a% $oun%ry, separa%e an is%in$% 4ro( %+e personali%y o4 %+e Ro(an *on%i44 or %+e Boly 'ee, 8i%+ou% pre7ui$e %o i%s
reli3ious rela%ions 8i%+ %+e la%%er 8+i$+ are 3o)erne by %+e -anon La8 or %+eir rules an re3ula%ions.
As pro)ie by la8, lans +el in %rus% 4or spe$i4i$ purposes (e be sub7e$% o4 re3is%ra%ion >se$%ion 69, A$% "96?,
an %+e $apa$i%y o4 a $orpora%ion sole, li9e pe%i%ioner +erein, %o re3is%er lans belon3in3 %o i% is a$9no8le3e, an %i%le
%+ere%o (ay be issue in i%s na(e >=is+op o4 Nue)a 'e3o)ia )s. 1nsular Go)ern(en%, 26 *+il. 300-1913?.
.+e 4ra(ers o4 %+e -ons%i%u%ion in%ene $er%ain pro)isions as barrier 4or 4orei3ners or $orpora%ions 4inan$e by
su$+ 4orei3ners %o a$5uire, e0ploi% an e)elop our na%ural resour$es. =u% %+a% is no% %+e $ase o4 $orpora%ions sole in %+e
*+ilippines, 4or, %+ey are (ere a(inis%ra%ors o4 %+e @%e(porali%ies@ or proper%ies %i%le in %+eir na(e an 4or %+e bene4i% o4
%+e (e(bers o4 %+eir respe$%i)e reli3ion $o(pose o4 an o)er8+el(in3 (a7ori%y o4 Filipinos. Ben$e, responen% Re3is%er
o4 ,ees o4 %+e -i%y o4 ,a)ao is orere %o re3is%er %+e ee o4 sale e0e$u%e by &a%eo L. Rois in 4a)or o4 %+e Ro(an
-a%+oli$ Apos%oli$ A(inis%ra%or o4 ,a)ao.
LI% SIA2 8<E; E- 4L @ 4LC)E1A L4'IE E- 4L!
>) 9o L-1&&79 %a/ &7! 1957
Doctrine: (n case of foreign plaintiffs, the authori$ation given to the counsel must be clear, specific, and unequivocal.
C4C-S, .+is is an a$%ion by %+e spouse an %+e $+ilren o4 -+ua *ua Lun %o re$o)er a(a3es 4ro( Al4reo LapiA, %+e
ri)er o4 %+e !a3uar 7eepney 8+i$+ $ollie 8i%+ a bus, resul%in3 %o %+e ea%+ o4 -+ua. As %8o o4 %+e $+ilren are (inors,
%+e $our%, upon (o%ion o4 %+eir $ounsel, appoin%e -+ua *ua .a(, a bro%+er o4 %+e e$ease, as 3uarian ad litem %o
represen% %+e( in %+is $ase. A4%er %rial, +o8e)er, %+e lo8er $our% is(isse %+e $o(plain% on %+e %+eory %+a% plain%i44s 4aile
%o au%+oriAe anyone %o 4ile %+e $o(plain% on %+eir be+al4, 8+i$+ is 4a%al %o %+eir $ause as %+ey are all $i%iAens an resien%s
o4 -o((unis% -+ina. 1n 4a$%, -+ua *ua .a(, %+e 3uarian ad litem, %es%i4ie %+a% %+e plain%i44s +a no% 8ri%%en %o +i( nor
+a +e $o((uni$a%e 8i%+ %+e(.
Lower Court )ulin*, %+e lo8er $our% is(isse %+e $o(plain%.
ISS<E,
1. :+e%+er or no% %+e plain%i44s +a)e +a)e au%+oriAe anyone %o 4ile %+e presen% $ase a3ains% %+e e4enan%s C No.
)4-IA, .+e 'upre(e -our% 4oun %+a% %+ere 8as no error in %+e 4inin3s (ae by %+e %rial $our%. 1% appears %+a% %+e
plain%i44s are all $i%iAens an resien%s o4 -o((unis% -+ina an no%8i%+s%anin3 %+e 4a$% %+a% %+ey +a)e been in4or(e o4
%+e ea%+ o4 %+e e$ease, %+ey +a)e no% sen% any $o((uni$a%ion %o anyone in %+e *+ilippines 3i)in3 au%+ori%y %o %a9e
8+a%e)er a$%ion (ay be proper %o ob%ain an ine(ni%y 4or +is ea%+.
.+e presen% a$%ion 8as ini%ia%e by plain%i44s represented merely by their counsel an %+e 5ues%ion arose as %o
8+e%+er %+e la%%er +a %+e proper au%+ori%y %o represen% %+e 4or(er in )ie8 o4 %+e 4a$% %+a% %+ey are all resien%s o4 a 4orei3n
$oun%ry. :+ile a la8yer is presu(e %o be properly au%+oriAe %o represen% any $ause in 8+i$+ +e appears, +e (ay
+o8e)er be re5uire by %+e $our% on (o%ion o4 ei%+er par%y %o prou$e +is au%+ori%y uner 8+i$+ +e appears an $ounsel
4or %+e plain%i44s 4aile.
.+e appoin%(en% o4 -+ua *ua .a( as 3uarian ad litem 8oul no% su44i$e %o (ee% %+e re5uire(en% o4 %+e rule
8+i$+ pro)ies %+a% e)ery a$%ion (us% be prose$u%e in %+e na(e o4 %+e real par%y in in%eres%. A3ain, i% (us% be s+o8n %+a%
-+ua *ua .a( 8as au%+oriAe by %+e +eirs abroa %o a$% as su$+ in be+al4 o4 %+e (inors. =u% 8+en in %+e $ourse o4 %+e
%rial, i% 8as 4oun %+a% +e ne)er +a any $o((uni$a%ion 8i%+ any o4 %+e +eirs an, (u$+ less, re$ei)e any au%+ori%y 4ro(
%+e( %+e %rial $our% a$%e a$$orin3ly in $onsierin3 +is represen%a%ion ine44e$%i)e.
LEE S<49 4;! 4L#E)-A -49! G LEE C8I4A @ E%ILIA >4L49> E- 4L!
>) 9o L-1175 1ecem$er 1+! 1959
Doctrine: The facts in obtaining citi$enship, all the qualifications and disqualifications, must be proved before the court.
C4C-S, 1n 195", Lee 'uan Ay, a -+inese $i%iAen, arri)e in %+e *+ilippines an 8as a(i%%e an au%+oriAe %o s%ay as a
%e(porary )isi%or 4or perio o4 %+ree (on%+s. .+is 8as e0%ene un%il 25 &ar$+ 1955. =e4ore +er arri)al, +er 4a%+er pos%e
a $as+ bon a(oun%in3 %o *10,000 as 3uaran%ee 4or +er $o(plian$e 8i%+ %+e %er(s an $oni%ions o4 +er s%ay in %+e
*+ilippines. #n 18 &ar$+ 1955, Alber%o .an, a Filipino, an Lee 'uan Ay re5ues%e %+e !us%i$e o4 %+e *ea$e o4 Las
*iSas, RiAal, %o 7oin %+e( in (arria3e. Be re4use %o o so as s+e +a %o ob%ain paren%al a)i$e, bein3 less %+an 23 years
ol.
#n 28 &ar$+ 1955, %+e bons(an 8ro%e a le%%er in4or(in3 %+e -o((issioner o4 1((i3ra%ion %+a% +is au3+%er 8as
ill an $on4ine a% %+e -+inese General Bospi%al sin$e 21 &ar$+ 1955 an %+a% as s+e (i3+% $ollapse urin3 %+e re%urn %rip
%o Bon39on3, s+e e4erre +er epar%ure se% 4or 23 &ar$+, an re5ues%in3 %+a% s+e be 3ran%e %en ays e0%ension o4 +er
au%+oriAe perio o4 %e(porary s%ay in %+e *+ilippines %o enable +er %o res% an re$upera%e. #n 1 April 1955, Lee 'uan Ay
an Alber%o .an 8ere 7oine in (arria3e by %+e !us%i$e o4 %+e *ea$e o4 Las *iSas. A4%er %+eir (arria3e, %+ey re$ei)e a
le%%er 4ro( %+e -o((issioner o4 1((i3ra%ion enyin3 %+eir pe%i%ion 4or e0%ension o4 +er %e(porary s%ay in %+e *+ilippines
an e$larin3 %+e $as+ bon 4or4ei%e in 4a)or o4 %+e Go)ern(en%. Ber 4a%+er as9e 4or re$onsiera%ion on %+e 3roun %+a%
+a)in3 (arrie a Filipino $i%iAen, Le 'uan Ay 4ollo8s %+e -i%iAens+ip o4 +er +usban an $ease %o be an alien %e(porary
)isi%or, an %+a% reason %+e $as+ bon 4ile s+oul be re%urne %o +i(G an %+a% +er 4ailure %o presen% +ersel4 %o %+e
-o((issioner o4 1((i3ra%ion 8i%+in 2" +ours 4ro( re$eip% o4 no%i$e 8as ue %o illness an loss o4 8ei3+%. .+us, %+is $ase
8as 4ile.
Lower Court )ulin*, .+e -our% is(isse %+e plain%i44sE $o(plain% bu% le4% %+e reu$%ion o4 %+e bon %o %+e soun
is$re%ion o4 %+e -o((issioner o4 1((i3ra%ion.
ISS<E,
1. :+e%+er or no% %+e *10,000 bon ori3inally 4ile s+oul be re%urne C No.
)4-IA, .+e 4a$% %+a% Lee 'uan Ay 8as (arrie %o a Filipino $i%iAen oes no% relie)e %+e bons(an 4ro( +is liabili%y on %+e
bon. .+e (arria3e %oo9 pla$e on 1 April 1955, an %+e )iola%ions o4 %+e %er(s an $oni%ions o4 %+e uner%a9in3 in %+e
bon F 4ailure %o epar% 4ro( %+e *+ilippines upon e0pira%ion o4 +er au%+oriAe perio o4 %e(porary s%ay in %+e *+ilippines
>25 &ar$+ 1955? an 4ailure %o repor% %o %+e -o((issioner o4 1((i3ra%ion 8i%+in 2" +ours 4ro( re$eip% o4 no%i$e F 8ere
$o((i%%e be4ore %+e (arria3e. &oreo)er, 4or a )ali $i%iAens+ip a$5uire by (arria3e, i% (us% be s+o8n %+a% s+e
possesses %+e 5uali4i$a%ions re5uire by la8 %o be$o(e a Filipino $i%iAen by na%uraliAa%ion. .+ere is no s+o8in3 %+a% Lee
'uan Ay possesses all %+e 5uali4i$a%ions an none o4 %+e is5uali4i$a%ions pro)ie 4or by la8 %o be$o(e a Filipino $i%iAen
by na%uraliAa%ion. .+us, %+e orer appeale 4ro( is a44ir(e.
-ES-4-E ES-4-E AC C A #A84949! '8ILI''I9E -)<S- CA! " %4>14LE94 C #A84949! E134)1 C
#A84949! and %4); L;1I4 #A84949
>) 9o L-1&105 .anuar/ +0! 1960
Doctrine: )s in accordance with )rticle 5> of the old &ivil &ode, the validity of testamentary dispositions are to be
governed by the national law of the testator provided that the law be evidenced in the court.
C4C-S, &a3alena -. =o+anan 8ere (arrie on !anuary 30, 1909, an %+a% i)or$e 8as 3ran%e %o +i( on &ay 20,
1922.
,e$een% in %+is $ase 3a)e ou% o4 %+e %o%al es%a%e >a4%er eu$%in3 a(inis%ra%ion e0penses? o4 *211,639.33 in
$as+, +is 3ranson *90,819.67 an one-+al4 o4 all s+ares o4 s%o$9 o4 se)eral (inin3 $o(panies an %o +is bro%+er an
sis%er %+e sa(e a(oun%. .o +is $+ilren +e 3a)e a le3a$y o4 only *6,000 ea$+, or a %o%al o4 *12,000.
.+e 8i4e &a3aalena -. =o+anan an +er %8o $+ilren 5ues%ion %+e )alii%y o4 %+e %es%a(en%ary pro)isions
isposin3 o4 %+e es%a%e in %+e (anner abo)e ini$a%e, $lai(in3 %+a% %+ey +a)e been epri)e o4 %+e le3i%i(a%e %+a% %+e
la8s o4 %+e 4or( $on$ee %o %+e(.
Lower Court )ulin*, ,is(isse %+e ob7e$%ions 4ile by &a3alena -. =o+anan, &ary =o+anan an 28ar =o+anan %o
%+e pro7e$% o4 par%i%ion sub(i%%e by %+e e0e$u%or an appro)in3 %+e sai pro7e$%.
.+e %es%a%or per(anen% resien$e or o(i$ile in %+e 6ni%e '%a%es epene upon +is personal in%en% or esire,
an +e sele$%e Ne)aa as +is +o(i$ie an %+ere4ore a% %+e %i(e o4 +is ea%+, +e 8as a $i%iAen o4 %+a% s%a%e.
:+ere4ore, %+e $our% 4ins %+a% %+e %es%a%or -. #. =o+anan 8as a% %+e %i(e o4 +is ea%+ a $i%iAen o4 %+e 6ni%e
'%a%es an o4 %+e '%a%e o4 Ne)aa an e$lares %+a% +is 8ill an %es%a(en%, 20+ibi% A, is 4ully in a$$oran$e 8i%+ %+e la8s
o4 %+e s%a%e o4 Ne)aa an a(i%s %+e sa(e %o proba%e.
ISS<ES,
1. :+e%+er &a3alena -. =o+anan $an $lai(. N#
2. :+e%+er %+e %es%a(en%ary isposi%ions, espe$ially %+ose 4or %+e $+ilren 8+i$+ are s+or% o4 %+e le3i%i(e 3i)en %+e(
by %+e -i)il -oe o4 %+e *+ilippines, are )ali N#.
)4-IA, .+e $our% belo8 +a 4oun %+a% %+e %es%a%or an &a3alena -. =o+anan 8ere (arrie on !anuary 30, 1909, an
%+a% i)or$e 8as 3ran%e %o +i( on &ay 20, 1922G %+a% so(e%i(e in 1925, &a3alena -. =o+anan (arrie -arl Aaron an
%+is (arria3e 8as subsis%in3 a% %+e %i(e o4 %+e ea%+ o4 %+e %es%a%or. 'in$e no ri3+% %o s+are in %+e in+eri%an$e in 4a)or o4 a
i)or$e 8i4e e0is%s in %+e '%a%e o4 Ne)aa an sin$e %+e $our% belo8 +a alreay 4oun %+a% %+ere 8as no $on7u3al
proper%y be%8een %+e %es%a%or an &a3alena -. =o+anan, %+e la%%er $an no8 +a)e no lon3er $lai( %o pay por%ion o4 %+e
es%a%e le4% by %+e %es%a%or.
28ar an &ary Lyia, 8+o +a re$ei)e le3a$ies in %+e a(oun% o4 *6,000 ea$+ only, an, %+ere4ore, +a)e no%
been 3i)en %+eir s+ares in %+e es%a%e 8+i$+, in a$$oran$e 8i%+ %+e la8s o4 %+e 4oru(, s+oul be %8o-%+irs o4 %+e es%a%e
le4% by %+e %es%a%or.
.+e ol -i)il -oe, 8+i$+ is appli$able %o %+is $ase be$ause %+e %es%a%or ie in 19"", e0pressly pro)ies %+a%
su$$essional ri3+%s %o personal proper%y are %o be earne by %+e na%ional la8 o4 %+e person 8+ose su$$ession is in
5ues%ion.
1n %+e pro$eein3s 4or %+e proba%e o4 %+e 8ill, i% 8as 4oun ou% an i% 8as e$ie %+a% %+e %es%a%or 8as a $i%iAen o4
%+e '%a%e o4 Ne)aa be$ause +e +a sele$%e %+is as +is o(i$ile an +is per(anen% resien$e. >'ee ,e$ision a%e April
2", 1950, supra?. 'o %+e 5ues%ion a% issue is 8+e%+er %+e %es%e(en%ary isposi%ions, espe$ially +ose 4or %+e $+ilren 8+i$+
are s+or% o4 %+e le3i%i(e 3i)en %+e( by %+e -i)il -oe o4 %+e *+ilippines, are )ali. 1% is no% ispu%e %+a% %+e la8s o4
Ne)aa allo8 a %es%a%or %o ispose o4 all +is proper%ies by 8ill >'e$. 9905, -o(plie Ne)aa La8s o4 1925, supra?. .+e
la8 o4 Ne)aa, bein3 a 4orei3n la8 $an only be pro)e in our $our%s in %+e 4or( an (anner pro)ie 4or by our Rules,
8+i$+ are as 4ollo8s/
'2-. "1. Proof of public or official record. F An o44i$ial re$or or an en%ry %+erein, 8+en a(issible 4or any purpose, (ay
be e)ien$e by an o44i$ial publi$a%ion %+ereo4 or by a $opy %es%e by %+e o44i$er +a)in3 %+e le3al $us%oy o4 +e re$or, or
by +is epu%y, an a$$o(panie, i4 %+e re$or is no% 9ep% in %+e *+ilippines, 8i%+ a $er%i4i$a%e %+a% su$+ o44i$er +as %+e
$us%oy. . . . >Rule 123?.
:e +a)e, +o8e)er, $onsul%e %+e re$ors o4 %+e $ase in %+e $our% belo8 an 8e +a)e 4oun %+a% %+e 4orei3n la8
8as in%rou$e in e)ien$e by appellan%Es >+erein? $ounsel as 20+ibi%s @2@.
1n ai%ion, %+e o%+er appellan%s, $+ilren o4 %+e %es%a%or, o no% ispu%e %+e abo)e-5uo%e pro)ision o4 %+e la8s o4
%+e '%a%e o4 Ne)aa. 6ner all %+e abo)e $ir$u(s%an$es, 8e are $ons%raine %o +ol %+a% %+e per%inen% la8 o4 Ne)aa,
espe$ially 'e$%ion 9905 o4 %+e -o(pile Ne)aa La8s o4 1925, $an be %a9en 7ui$ial no%i$e o4 by us, 8i%+ou% proo4 o4 su$+
la8 +a)in3 been o44ere a% %+e +earin3 o4 %+e pro7e$% o4 par%i%ion.
#E9I-A E LI% @ 8E)#E)- #)A393ELL! .)!
>) 9o L-7575 %arc( &0! 1960
Doctrine: ) foreign government cannot be sued without its consent.
C4C-S, .+e proper%y in ispu%e $onsis%s o4 4our par$els o4 lan si%ua%e in .ono &anila 8i%+ a %o%al area o4 29,151
s5uare (e%ers. .+e lans 8ere, a4%er %+e 8orl 8ar, 4oun by %+e Alien *roper%y -us%oian o4 %+e 6ni%e '%a%es %o be
re3is%ere in %+e na(e o4 Asai$+i Da3a8a, na%ional o4 an ene(y $oun%ry. .+e *+ilippine Alien *roper%y A(inis%ra%or an
%+e *resien% o4 %+e *+ilippines %+en e0e$u%e %8o 4or(al a3ree(en%s 8i%+ %+e 6ni%e '%a%es %o %rans4er all 4our lo%s %o %+e
Republi$ o4 %+e *+ilippines 8i%+ an uner%a9in3 %o ine(ni4y %+e 6ni%e '%a%es 4or all $lai(s in rela%ion %o %+e proper%y
%rans4erre.
=eni%o Li(, 4ile a 4or(al no%i$e o4 $lai( 8i%+ %+e *+ilippine Alien *roper%y A(inis%ra%or, $on%enin3 %+a% %+e lo%s
in 5ues%ion s%ill belon3e %o %+e es%a%e o4 +er (o%+er, Arsenia 2nri5ueA. Be alle3e %+a% %+e lo%s 8ere on$e %+e proper%y o4
Arsenia 2nri5ueAG %+a% %+ey 8ere (or%3a3e by +er %o %+e &er$an%ile =an9 o4 -+inaG %+a% %+e (or%3a3e +a)in3 been
4ore$lose, %+e proper%y 8as sol a% publi$ au$%ion urin3 %+e 8ar %o %+e !apanese Asai$+i Da3a8a, 8+o su$$eee in
pre)en%in3 Arsenia 2nri5ueA 4ro( e0er$isin3 +er ri3+% o4 ree(p%ionG an %+a% Da3a8a ne)er a$5uire any )ali %i%le %o %+e
proper%y be$ause +e 8as ineli3ible uner %+e -ons%i%u%ion %o a$5uire resien%ial lan in %+e *+ilippines by reason o4 alien
a3e.
.+e Kes%e *roper%y -lai(s -o((i%%ee o4 %+e *+ilippine Alien *roper%y A(inis%ra%or isallo8e %+e $lai(. .+e
orer be$a(e 4inal as Li( i no% appeal %+ere4ro(. .+us, Li(, as a(inis%ra%or o4 %+e in%es%a%e es%a%e o4 Arsenia
2nri5ueA, 4ile a $o(plain% in %+e -our% o4 Firs% 1ns%an$e o4 &anila a3ains% %+e *+ilippine Alien *roper%y A(inis%ra%or >la%er
subs%i%u%e by %+e A%%orney General o4 %+e 6ni%e '%a%es? 4or %+e re$o)ery o4 %+e proper%y in 5ues%ion 8i%+ ba$9 ren%s. .+e
$o(plain% 8as la%er a(ene %o in$lue Asai$+i Da3a8a as e4enan%. Be 8as su((one by publi$a%ion, bu% +a)in3
4aile %o 4ile an ans8er %o %+e $o(plain%, +e 8as e$lare in e4aul%.
Lower Court )ulin*, .+e $our% is(isse %+e $o(plain% on %+e 3roun %+a% i% +a no 7urisi$%ion o)er %+e sub7e$% (a%%er
sin$e %+e $lai( $ons%i%u%e a sui% a3ains% %+e 6ni%e '%a%es %o 8+i$+ i% +a no% 3i)en i%s $onsen%.
ISS<ES,
1. :+e%+er or no% %+e $o(plain% 8as a sui% a3ains% %+e Go)ern(en% o4 %+e 6ni%e '%a%es C ;es, bu% %+ere 8as
$onsen%.
2. :+e%+er or no% a(a3es (us% be pai C No, %+e $onsen% o4 %+e 6ni%e '%a%es 8as li(i%e %o 4ilin3 o4 sui% an oes
no% e0%en %o %+e pay(en% o4 a(a3es.
)4-IA, .+e orer o4 is(issal $anno% be sus%aine in i%s en%ire%y. Al%+ou3+ %+e a$%ion is in subs%an$e a3ains% %+e 6ni%e
'%a%es, %+e i((uni%y o4 %+e s%a%e 4ro( sui%, $anno% be in)o9e 8+ere %+e a$%ion is ins%i%u%e by a person 8+o is nei%+er an
ene(y or ally o4 an ene(y 4or %+e purpose o4 es%ablis+in3 +is ri3+%, %i%le or in%eres% in )es%e proper%y, an o4 re$o)erin3
+is o8ners+ip an possession. .+e $onsen% %o su$+ sui% +as e0pressly been 3i)en by %+e 6ni%e '%a%es in 'e$. 3 o4 %+e
*+ilippine *roper%y A$% o4 19"6.
.urnin3 %o %+e $lai( o4 a(a3es, %+e orer o4 is(issal (us% be up+el. .+e relie4 a)ailable %o a person $lai(in3
ene(y proper%y 8+i$+ +as been )es%e by %+e *+ilippines Alien *roper%y -us%oian is li(i%e %o %+ose e*pressly pro)ie
4or in %+e .rain3 8i%+ %+e 2ne(y A$%, 8+i$+ oes no% in$lue a sui% 4or a(a3es 4or %+e use o4 su$+ )es%e proper%y..
:i%+ respe$% %o %+e re$o)ery or re%urn o4 %+e proper%ies )es%e, se$%ion 33 o4 %+e .rain3 8i%+ %+e 2ne(y A$%
pro)ies a pres$rip%i)e perio/ %+e $lai( s+oul no% be 4ile la%er %+an April 30, 19"9, or 8i%+in %8o years 4ro( %+e a%e o4
)es%in3, 8+i$+e)er is la%er. 1n $o(pu%in3 %+e %8o years, +o8e)er, %+e perio urin3 8+i$+ %+ere 8as penin3 a sui% or
$lai( 4or %+e re%urn o4 %+e sai proper%y s+all be e0$lue.
Bere, inso4ar as lo%s 3 an " o4 %+e lan in ispu%e are $on$erne, )es%in3 o$$urre on !uly 6, 19"8 an
$onse5uen%ly %+e %8o-year perio 8i%+in 8+i$+ %o 4ile %+e a$%ion 4or %+eir re$o)ery e0pire on !uly 7, 1950. =u% in
$o(pu%in3 %+a% %+e %8o-year perio, %+e %i(e urin3 8+i$+ plain%i44Es $lai( 8i%+ %+e *+ilippine Alien *roper%y A(inis%ra%ion
8as penin3 F 4ro( No)e(ber 16, 19"8 8+en %+e $lai( 8as 4ile %o &ar$+ 7, 1950 8+en i% 8as issallo8e F s+oul be
e0$lue. .+e $o(plain% %+ereo4 4ile on No)e(ber 13, 1950 is 8ell 8i%+in %+e pres$ribe perio.
#n %+e o%+er +an, lo%s 1 an 2 8ere )es%e by %+e Alien *roper%y -us%oian on &ar$+ 1", 19"6. .+e %8o-year
perio, %+ere4ore, 8i%+in 8+i$+ %o 4ile a sui% 4or %+eir re%urn e0pire on &ar$+ 1", 19"8.
*lain%i44 $on%ens %+a% se$%ion 33 o4 %+e .rain3 8i%+ %+e 2ne(y A$% $anno% pre)ail o)er se$%ion "0 o4 %+e -oe o4
-i)il *ro$eure, 8+i$+ pro)ies %+a% an a$%ion %o re$o)er real proper%y pres$ribes a4%er 10 years, on %+e %+eory %+a% uner
in%erna%ional la8 5ues%ions rela%in3 %o real proper%y are 3o)erne by %+e la8 o4 %+e pla$e 8+ere %+e proper%y is lo$a%e an
%+a% pres$rip%ion, bein3 re(eial, is li9e8ise 3o)erne by %+e la8s o4 %+e 4oru(. =u% %+e %rain3 8i%+ %+e 2ne(y A$%, by
$onsen% o4 %+e *+ilippine Go)ern(en%, $on%inue %o be in 4or$e in %+e *+ilippines e)en a4%er !uly ", 19"6 an
$onse5uen%ly, is as (u$+ par% o4 %+e la8 o4 %+e lan as se$%ion "0 o4 %+e -oe o4 -i)il *ro$eure.
.+us, %+e orer appeale 4ro( inso4ar as i% is(isses %+e $o(plain% 8i%+ respe$% %o Lo%s 1 an 2 an %+e $lai( 4or
a(a3es a3ains% %+e A%%orney General o4 %+e 6ni%e '%a%es an %+e Republi$ o4 %+e *+ilippines, is a44ir(e, bu% re)o9e
inso4ar as i% is(isses %+e $o(plain% 8i%+ respe$% %o Lo%s 3 an ", as %o 8+i$+ %+e $ase is +ereby re(ane %o %+e $our%
belo8 4or 4ur%+er pro$eein3s.